The reasons for this huge difference are well known: Many women have career absences due to the birth of their children, they also work part-time more often and are more likely to forego promotions and senior positions in favor of their families. As a result, they pay far too little into the pension fund over the years and are at risk of slipping into poverty in old age. According to experts, the statutory pension of up to 75 percent of today's 35 to 50-year-old women will be below the current Hartz IV level.
This makes it all the more important to make private provisions. We asked pension expert Uwe Redler what you need to bear in mind. His most important advice first: "Anyone who recommends any product to you at your first appointment is working in a dubious manner. It's best to seek individual advice from an independent fee-based advisor."
Pension as a part-time employee: Calculate exactly how much money you need to live on in old age
Many women go part-time because of their children, and the majority of them never return to full-time work. Employees who work part-time for many years must be aware that in many cases they will hardly acquire any pension entitlements and that their statutory pension will most likely not be enough later on. Private provision is particularly important for these women.
➜ The earlier, the better: time makes the money. Paying 50 euros a month into a pension plan at the age of 20 will ultimately pay off more than paying 100 euros at the age of 30 due to compound interest. So tackle the issue as early as possible.
➜ Involve your partner: Young women in particular should agree with their husbands in a marriage contract that they will compensate for their career breaks with a corresponding pension.
➜ Don't let anyone talk you into it: Women who have not yet made private provisions and would now like to change this quickly should never blindly book any pension product or be talked into one at the bank or by an insurance company. Instead, they need to calculate exactly how much they will need to live on each month in old age so that they know how much they need to save. Important: Inflation must also be taken into account. An independent fee-based advisor can help to develop a correct and suitable pension strategy on this basis.
Retirement as a full-time employee: Those who work full-time can make targeted use of state subsidies
Women who have a full-time job acquire higher pension entitlements due to their higher salary. However, they are still paid less than men. Many employees in the low-wage sector are at risk of poverty in old age despite working full-time and should make additional targeted provisions.
➜ Don't put all your eggs in one basket: It is not a good idea to invest your money in a pension product alone. It is best to invest your money in a mix of short, medium and long-term forms of investment. This way you have money available and still save. Call money accounts are suitable in the short term, fixed-interest savings accounts and securities in the medium term. Long-term investments include most traditional pension products, the purchase of a property as a capital investment and shares, which generate good long-term returns when well diversified.
➜ S ave with the state and your employer: Can you use a company pension scheme? Very well. The employer converts part of your salary directly into a pension or subsidizes your pension. The Riester pension may also be an option. It is subsidized by the state and provides an annual allowance of up to 154 euros - or more if you have children who are entitled to child benefit. For high earners, the Rürup pension, which is also subsidized by the state, may be an option.
Pension as a freelancer: pension contracts without rigid obligations are ideal here
Self-employed and freelancers have a fluctuating income. As a result, they sometimes have more, sometimes less money for private pension provision. Instead of paying into the statutory pension fund, many save the money and do nothing. However, they could simply pay the contribution to the statutory pension fund privately or make private provision.
➜ Better to start early and small: The self-employed and freelancers tend to put off retirement provision because they often have little money, especially at the beginning. However, it's worth starting early - even with small amounts.
➜ Be careful when concluding contracts: Self-employed and freelancers should not conclude contracts that do not allow them to adjust the contribution amount. This way, they avoid not being able to pay if they only have low income in certain phases. It must be possible to temporarily suspend payments or even withdraw early.
➜ Always keep an eye on costs: If an investment is temporarily shut down, it is important not to experience any disadvantage as a result. Everyone must be aware that the costs for a pension product will continue, even if you are not saving in it at the moment. If contributions are not made for a longer period of time, in the worst case scenario these fees will be deducted from the balance already saved. So always make sure you choose pension products that have low costs.
And what happens if I become unemployed?
You also acquire pension entitlements as an unemployed person. The Federal Employment Agency then pays pension contributions to the German Pension Insurance Fund (Deutsche Rentenversicherung BUND): If you receive unemployment benefit I, the pension contribution is calculated on the basis of 80% of your previous gross income. This corresponds to a "pension reduction" of 20%. Your entitlement is lower if you receive Hartz IV. Since January 2011, pension insurance contributions have no longer been paid by the agency. It is a "credited period without assessment". This means: the pension does not increase, but the time is counted towards the qualifying period for the old-age pension.
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