Many people in old age will not be able to make do with their statutory pension alone. But how much do you really have to take into account? Tips from financial expert Gerd Kommer.
Munich (dpa / tmn) - With the statutory pension alone, it will be scarce for most future retirees in old age. That means: in order to be able to maintain your standard of living later, you have to develop a plan. "However, surprisingly few do that," said financial expert and author Gerd Kommer in an interview with dpa themed service. It is not complicated with the plan and does not take much time.
How can I develop a retirement plan?
Gerd Kommer: First of all, you have to deal with your current financial situation, i.e. take stock. You can search your bank statements on a weekend. This way you can determine how much you are spending. If you've done that, you've already taken the first step. Because then you know how high your financial needs are.
You should also add up the assets that you own - for example real estate, your claims from the statutory pension and possibly other life or pension insurance. This results in your assets that you have available for retirement. It is important that the sums are not just added up. The so-called present value method is best suited for this.
What do I really need in old age?
Kommer: Your cost of living will probably decrease. A rule of thumb says that you need about 20 percent less in retirement. However, this does not necessarily apply from the start, because you may want to travel first. You should take that into account.
In addition, two points are important: do not underestimate your life expectancy and do not overestimate the nursing risk.
Most life expectancy is based on statistical averages. Half of all people get older, many five or more years older. That means: to make sure you need more money for retirement. It's the other way around when it comes to care risk. Covering the full risk is very expensive - too expensive for most. That is why I tend to advocate doing nothing beyond statutory long-term care insurance.
Question: Retired stocks - isn't that too risky?
Kommer: The vast majority of German citizens avoid shares, which is the longest-earning investment category. If you do it right, stocks should be in every portfolio - regardless of age. There is a rule of thumb: 100 or 110 minus age equals shares. Accordingly, a 70-year-old could still have 30 percent shares in his portfolio - provided he can live with the price fluctuations.
It is important that the investment is widely spread, for example in an ETF on the MSCI World Index, i.e. around 1600 individual stocks. You can combine this with a daily allowance within the state deposit insurance scheme and then set up a payment plan. There should always be a small buffer between the annual withdrawal rate and the assumed average return so that the depot does not die in front of its owner.
Literature:
Gerd Kommer: "Invest confidently before and after retirement - Secure your standard of living and your financial goals with ETFs", Campus Verlag 2020, 343 pages, 27.95 euros, ISBN-13: 978-3-593-51245-7