Rising prices are making it increasingly difficult for retirees to make ends meet with their monthly pension payments.
Six tips to make it easier.
Munich - Because of inflation and rising energy prices, it is becoming difficult for more and more retirees to make ends meet with their pensions.
With these six tips, you can have more left over at the end of the month.
1. Financial check: minimize fixed costs
A good start for finding savings potential is the financial check, also for retirees, i.e. a list of income and expenses to get a better overview of what you can spend at the moment.
You can save a lot of money on the fixed costs.
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Older gentleman in the sun: Six savings tips to get through the month better with your pension.
© Frank Rumpenhorst/dpa
The living situation is very different.
It may be worth moving to a smaller apartment or to the country.
On the other hand, retirees could benefit from old leases with cheap old contracts.
There is no harm in comparing rental prices in the area with the current rent.
Pensioners could also save on insurance.
Some safeguards become obsolete in old age without a permanent position.
Disability and accident insurance are often unnecessary for retirees.
Most retirees no longer have to pay contributions for savings products that serve as a pension when they retire.
With some contracts, it is advisable to check whether the expenses actually make sense.
For example, a death benefit policy is designed to cover the cost of your own funeral.
Education insurance that supports children's careers.
However, both products bring no or only very low returns and cause high administration costs.
Similar to insurance contracts, it is advisable to check all completed memberships and terminate them if necessary.
With increased energy costs, it is also advisable to pay attention to electricity and gas consumption.
2. Take advantage of pensioner discounts
Pensioners who want to organize their free time in a variety of ways can benefit from pensioner discounts at various points.
Popular destinations with discounts could be, for example:
sports clubs
operas
Must
sporting events
movie theater
theatre
library
Tip: Don't forget your pension card!
Seniors often have to prove to the cash register that they are drawing a pension.
3. Plan your vacation tactically
As a pensioner you are more flexible in terms of time than, for example, families with school children.
This is particularly useful when planning a vacation.
If you take care to plan your vacation outside of the high season, you can save a lot of money every year.
And you have a little more peace and quiet at your holiday destination than during the popular holiday periods.
If you like to travel by train, you can save at another point: namely with the Senior Bahncard.
For people who often travel by train, it can be worthwhile.
The cheapest example, the Senior Bahncard 25, costs EUR 38.90 per year.
With it you can save 25 percent on many Deutsche Bahn tickets.
4. Portions for seniors: Pay close attention to the menu in the restaurant
In many restaurants there are portions for seniors as well as for children.
If you're not particularly hungry, you can order the cheaper, slightly smaller portions.
And if the senior portions aren't on the menu, it's often worth asking the waiter.
5. Be careful with the tax return
According to the income tax assistance, “pensioners are generally obliged to submit a tax return if the taxable part of your gross annual pension exceeds the basic tax-free allowance.
The basic allowance for single people in 2023 is 10,908 euros per year.
Double the value for married people.”
year of retirement | Tax share in % | Pension allowance in % |
2022 | 82 | 18 |
2023 | 83 | 17 |
2024 | 84 | 16 |
2025 | 85 | 15 |
2026 | 86 | 14 |
2027 | 87 | 13 |
It is also important for pensioners that not only the cover sheet of the tax return, but also Appendix R for "pensions and other domestic benefits" must be filled out, writes the wage tax assistance.
Retirees can deduct the following expenses from their taxes, among others:
handyman costs
Extraordinary burdens (e.g. medical expenses, expenses for the nursing home)
Special expenses (e.g. contributions to health and nursing care insurance, donations, private liability insurance)
Household services (e.g. costs for cleaners, chimney sweeps)
6. If possible: take advantage of pension subsidies
Due to rising costs, it is becoming increasingly difficult for many seniors to make ends meet with their pension.
Luckily, you can also secure a few grants from the state or health and nursing care insurance companies this year.
These include, among others:
Housing Benefit Plus
basic security
Basic pension and allowance
burden allowance
Support for personal contribution in the nursing home
All grants have different criteria that they must meet.
You can find more detailed information on the financial aid mentioned here.
List of rubrics: © Frank Rumpenhorst/dpa
