As you approach retirement, ensuring financial security becomes a top priority. While the state pension scheme provides a basic income, many people choose to supplement it with private pension insurance. In this blog, we’ll delve into the details of private pension insurance in Germany, covering its structure, tax benefits, investment approach, and why it might be the right choice for you.
Understanding Private Pension Insurance in Germany
There are two main types of pension plans in Germany:
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State pension insurance: Compulsory and deducted directly from your salary
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Private pension plans: Voluntary, but highly recommended