Enough money in old age: The financial roadmap for a good pension

Created: 12/23/2022, 1:55 p.m

By: Patricia Huber

How much money do you need to make ends meet in old age?

This can be determined using a pension timetable.

Munich – 809 euros pension: This is how much women in the old federal states receive on average per month.

This comes from data from the German pension insurance.

For men, the average pension in the West is around 1218 euros.

That's not much to live on - after all, rent and Co. also have to be paid with it.

This makes it all the more important to draw up a plan before you retire on how you can best manage with your own savings.

But what is the best way to plan your finances in old age?

provides an overview.

Pension: Calculate your needs - That's how much money you need in old age

In order to create a good financial plan for your retirement, you must first determine how much money you will then need.

As a rule of thumb, the Stiftung Warentest gives 80 percent of the previous net income.

At least if you want to maintain your current standard of living – which is usually the case.

It quickly becomes clear that the statutory pension will not suffice here.

The following sample calculation shows that in many cases there is a pension gap:

A woman earned 2,000 euros net in the years before her retirement.

According to the rule of thumb, she would then need 1600 per month when she retired.

Assuming that she has paid into the pension insurance for 40 years, she will receive a pension of around 1300 euros.

This leaves a gap of 300 euros per month, which she should close with private pension schemes.

In addition to the regular pension, it should also be taken into account what income you will still have in old age.

For example, if you own a property that you rent out, you can still count on rental income.

Anyone who has already planned early can now also fall back on savings from equity funds or ETFs.

Retirement: how much money should you have saved

But how much money should you have saved and when?

Again, there is a rule of thumb, as Allianz explains.

Accordingly, one should save ten to 15 percent monthly or annually for private old-age provision.

Calculation example: Craftsman, 50 years old, employed for 30 years, average earnings per year 20,000 euros

10 percent of $20,000 = $2,000 per year

2000 euros x 30 professional years =

.

By the time he is 50, he should have saved 60,000 euros for his retirement.

Depending on the standard of living and earnings, this sum will of course be higher.