Employers can donate up to 40 euros a month for the accumulation of assets for their employees.
But how do you create capital-forming benefits?
There are multiple possibilities.
Munich – The capital-forming benefits (VL) can be invested in bank and fund savings plans or used for real estate financing.
Which investment promises the greatest return?
And how do the benefits and funding from the state actually work?
An overview with the best options.
Capital-forming benefits: how they work
Employees decide on a VL contract of their choice and inform the employer of this.
This transfers the capital-forming benefits directly to the selected provider.
If the required minimum savings rate is higher than the VL subsidy granted, the savings rate can be increased from your own funds.
The savings period is six years plus a waiting period until the end of the year.
You can then use the capital or save further with a new contract.
Some collective agreements bind the capital-forming benefits to the company pension scheme (bAV).
Then the money only flows back in old age as a pension, and taxes and social security contributions are also incurred.
VL-Sparen is particularly attractive in connection with state subsidies.
The public sector pays up to 42.30 euros in employee savings allowance per building society contract, provided that the income does not exceed 17,900/35,800 euros (single persons/married couples).
For income up to 35,000/70,000 euros, an additional housing construction premium of up to 70 euros is possible.
Equity funds and ETFs are funded with up to a gross annual amount of 20,000/40,000 euros with up to 80 euros.
If different savings contracts are combined, you can collect several allowances at the same time.
Positive: Earnings can be above the stated income limits, because income-related expenses, special expenses and child allowances that have not been taken into account can be deducted from this.
VL savers must apply for the state allowance each year with their income tax return from the tax office.
Saving with capital-forming benefits: bank savings plan
VL bank savings plans offer very cautious savers a high level of capital security and no fees.
However, state funding is excluded.
The many years of low interest rates have severely thinned out the offers.
Nationwide VL savings plans are currently offered by ING and Degussa Bank.
Thanks to the recent rise in interest rates, the Degussa savings plan has now improved to a return of 2.85 percent.
ING also recently significantly increased its fixed interest rate for VL-Sparen from 0.10 to 1.50 percent annually.
Saving with capital-forming benefits: fund savings plan or ETF savings plan
Savings plans with equity funds are suitable for employees who want to invest with opportunities and who are not fundamentally afraid of price risks.
According to calculations by the BVI fund association, VL equity funds with a focus on Germany achieved an average return of 7.41 percent for each seven-year term from 1962 to 2021.
EUR 40 per month became EUR 3,875 per savings period, including a savings allowance even EUR 4,355.
Disadvantage: There is no guarantee of return, some funds ended savings intervals in the red.
Many banks, savings banks and investment companies offer VL fund savings plans – usually with a savings sum of 25 euros or more – such as Commerzbank, Targobank, VR-Banken, Deka and Fidelity.
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The boss helps you save: Opportunities for capital-forming benefits.
© Christin Klose/dpa-tmn
VL-Sparen with computer-controlled index funds (ETFs) is very inexpensive, since only low fees and fund costs are incurred.
However, there is no guarantee of returns here either.
Finvesto and Comdirect, for example, offer cheap ETF savings plans for private investors.
The robo-advisors Ginmon and Oskar also invest VL funds in ETFs, Ginmon even free of charge.
Attention: Robos usually do not offer any state funding.
Saving with capital-forming benefits: home savings contract and mortgage loan
VL building savings contracts enable low interest rates on loans of less than two percent for later real estate purchases.
Low earners also benefit from the employee savings allowance and the housing premium.
But: If you don't buy or renovate later, you have to pay back the housing premium.
However, there is an exception for young savers up to the age of 25.
You do not have to repay the housing premium if the money does not flow into a property after the seven-year commitment period.
Depending on the contract, capital-forming payments can also be paid into current real estate loans.
That lowers the debt burden.
If, for example, an additional 40 euros flow into the credit account every month, the remaining debt of a 100,000 euro loan at 3.0 percent debit interest falls by almost 5,500 euros within ten years.
How much do the VL savings plans cost?
Especially with small savings you have to pay attention to the costs of an investment.
In the case of home loan and savings contracts, there are usually closing fees, and some building societies also charge ongoing annual fees.
That reduces the yield.
In terms of costs, ETF savings plans are the cheapest.
There are no fund management costs here.
The fees are low, some providers do not charge them at all.
Author: Max Geissler
For more information on the subject of capital-forming benefits, you can send an email to ratgeber@biallo.de.
List of rubrics: © Christin Klose/dpa-tmn