German Private Pensions Level 3 | The Right Pension for Expats with Tax Free Growth of Your ETFs?

Рет қаралды 5,272

Күн бұрын

Pensions Level 3 might surprise you how cool pensions in Germany can be. 😱
Private pensions level 3 are as flexible as it gets and most likely the right pension level for expats living in Germany. You can use your pension level 3 to finance Real Estate for example. 🏠
And that's just one of many benefits of pensions level 3. But of course, there are also some disadvantages of pensions level 3 in Germany.
What are Pensions Level 3 exactly? 🤔
What are the benefits & downsides? 🤔
Who should get Pensions Level 3? 🤔
Axel will answer all of these questions and more in this video on Pensions Level 3.
Read the article on our website: perfinex.de/german-pensions-l...
Videos Axel mentioned:
Which German Pension Is Best for You? | German Pensions with Scenarios for Expats Living in Germany
• Which German Pension I...
German Pensions Level 1: Public Pension & Rürup | High Tax Benefits for Your ETFs in Rürup Pension
• German Pensions Level ...
German Pensions Level 2: Company Pension & Riester | Tax Benefits & Government Bonuses with Riester
• German Pensions Level ...
Taxes in Germany Explained | Income Tax, Tax Classes, Church Tax, Solidarity Tax
• Taxes in Germany Expla...
Renting vs Buying a Home: What's Better for You? | Buy or Rent a Property / Real Estate in Germany
• Renting vs Buying a Ho...
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00:00 Intro
02:22 Pensions inside Pension Level 3
02:43 Advantages of Pensions Level 3
11:13 Disadvantages of Pensions Level 3
13:26 3 Scenarios: Who should get Pensions Level 3?
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Пікірлер: 30

@Shubh22 3 жыл бұрын

This is exactly what I am looking for! I have been already doing some financial planning recently, but I must say that your video contents have helped me to understand the concepts more clearly. Now I wait for Fridays to see your new videos. Thank you buddy.

@PerFinEx 3 жыл бұрын

I'm very happy that our content helps you build a better financial future for yourself! Thank you so much for watching & we got a lot more exciting things for the upcoming Fridays planned. Stay tuned! 👍

@coxeter8508 3 жыл бұрын

Hello, I am struggling whether to start an ETF savings plan or a level 3 pension insurance. The only reason I would go for the latter is that juicy 50% tax benefit at pay-out time, but I am not sure if this would outbalance the insurance costs. Moreover, suppose that in 10 years I leave Germany and move to another country (who knows). I could of course stop contributing to the pension and just leave the capital to grow. But at pay-out time, I would be fiscally resident in the other country, and my one-time payout would be taxed according to that country. That 50% tax benefit promised by Germany would be lost, right? Anyway, thank you Axel for your videos, I am really enjoying them.

@PerFinEx 3 жыл бұрын

Thank you very much for your comment. Really enjoyed reading through your thought process. 🙂 International tax law is certainly a very difficult subject that depends on many different factors (e.g. if the country you move to has a double taxation agreement with Germany). At the end of the day, if you want to keep a lot of options open, it might be a good idea to take many different investment options as well. So maybe investing in a savings plan & a pension level 3 might be right for you.

@pedroaalmeida96 2 жыл бұрын

Hi Axel, again excellent video! Just one question from what I could understand pension level 3 is like a brokerage account on steroids. What are the benefits of having a brokerage account instead of a pension level 3? only the different types of ETF and investments? Since you can withdraw the money from the pension only paying the same amount of taxes as in a brokerage account, someone that only invests in ETFs should be better off using a pension level 3 as his brokerage account if necessary.

@PerFinEx 2 жыл бұрын

I like the expression "brokerage account on steroids". 😂 We compared ETFs in a brokerage account vs ETFs in a pension level 3 in this video: kzfaq.info/get/bejne/ZtSWaahorczbj6s.html

@maxsumesh 8 ай бұрын

Isn't market gains tax free after the first year or is it different for ETF?

@ValentinaLino 2 жыл бұрын

Hi really nice your videos! Thanks for sharing your knowledge. My question regarding the Private Pensions in Germany is if they can start paying me when I'm 40 or 50 years old, if I decide to go in early retirement, or if the minim age to start receiving the money is with 60 years old? Thanks

@PerFinEx 2 жыл бұрын

This depends on many different factors (e.g. if you would like a one-time payout or a monthly pension from your private pension level 3). Generally speaking it is possible ( and best) to start your monthly pension with age 62, because at this age you will also get tax benefits. So you might want to find other investments that pay for your living cost between 40-62. /Axel

@aabdullahiKH 2 жыл бұрын

Hi Axel, funds cannot be withdrawn from any of the pension levels (1, 2 and 3) without retiring right? Thanks

@PerFinEx Жыл бұрын

Hi Adamu, almost correct. - Level 1: Cannot be withdrawn because of the tax benefits you got - Level 2: Depends on the exact pension scheme but could be withdrawn - Level 3: Can be withdrawn

@b3rs3rk3r80 2 жыл бұрын

Hi Axel, I was looking online for such a pension in English but I can’t seem to find it anywhere, all I can find is brokers who allow to buy ETF, can you give one example of such a pension scheme?

@PerFinEx 2 жыл бұрын

You can book a free meeting right here and we will help you find the best pension scheme for your individual situation: perfinex.de/meeting

@jopena Жыл бұрын

Hi , Alex. Can a person from the EU living and working in Germany participate in all 3 pension levels? e.g. Level1 - Government(mandatory) , Level 2- Company Pension (BaV) and Level 3 - private pension?

@PerFinEx Жыл бұрын

Sure!

@firstsecond9569 3 жыл бұрын

Can regular employees opt for level 3 and opt out of level 1? Or could it only be opted for in addition to level 1?

@PerFinEx 3 жыл бұрын

Employees have to pay into public pension level 1. You can get all other pensions in addition.

@niharlathiya 3 жыл бұрын

Can an employee choose not to contributing in any level of pension insurance? if as an expat I am planning to leave Germany after 10 years may be

@PerFinEx 3 жыл бұрын

Employees are only forced to pay into public pension as part of social security. Other pensions are optional.

@firstsecond9569 3 жыл бұрын

When you say pension level 2 is suitable for people who want to retire in their home country, does that still apply if their home country is in the EU?

@PerFinEx 3 жыл бұрын

Yes, Pensions Level 2 are actually best if your retirement country is in the EU.

@Eduu2185 3 жыл бұрын

What if I start a German private pension contract and leave Germany after 3 years (non-EU) expat?

@PerFinEx 3 жыл бұрын

If you know already that you will leave in 3 years, it's probably not a good idea to start investing in a pension now. If you are not sure yet, you have always the option to stop contributing. Depending on the pension level you have also the option to cancel your pension contract and get the savings you accumulated.

@HL-uw7fk 5 ай бұрын

Isnt bigger money lost to 2-3% p.a. administrative costs vs tax over long term in all of this pension funds?

@PerFinEx 5 ай бұрын

If your pension plan charges 2%-3%/year you have the wrong pension plan. On average pensions charge 0,5%-1% (incl. ETFs). The up to 42% tax benefit will be far greater than the costs, especially since you can reinvest your 42% tax benefit again for double compounding growth.

@HL-uw7fk 5 ай бұрын

@@PerFinEx I don’t have any at the moment. Trying to learn about them, but I’ve must have heard too high interest rates from some people then. Thank you for clarification! This is exactly what I was worried about compounding interest of 2-3% is heavy price to pay 😁 but it seems to be quite lower.

@julietagbozo67 2 жыл бұрын

I would like to if there is a pension plan that can be inherited. Eg. I make a contribution for 30years and die at age 65(before my pension payout starts) can my pension contribution be inherited by my child?

@PerFinEx 2 жыл бұрын

It depends on the pension level and the exact pension you have. Generally speaking, it is possible if you have the right pension.

@julietagbozo67 2 жыл бұрын

Which pension do you recommend? Or with which company can I get such options?

@PerFinEx 2 жыл бұрын

You can book a free meeting right here & we will help you find the best pension for your personal situation: perfinex.de/meeting