Sensible insurances for seniors – The most important insurances for the retirement age
Most people deal with the topic of insurance after the conclusion of a contract as good as no more. At most, the annual debit from the bank account reminds the policyholder that he or she has household, liability or other insurance coverage. As long as you maintain your status as an employee, there is little reason to change your insurance coverage. At most, the comparison and possible change to cheaper providers can be carried out regularly.
The change from employment to retirement means a big change in almost all areas of life. When it comes to insurance, it may be worthwhile for you to review the contracts you have taken out to see if they are worthwhile for you. Not all insurance policies that are important for working people make sense in retirement.
Savings potential – time to clean up
If retirement is not far off, you should gather your records of all the insurance policies you have taken out and check each insurance company for added value with regard to the upcoming retirement. Due to cancellation periods or minimum terms, early action can reflect positively on your account.
Occupational disability or daily sickness allowance insurances are no longer necessary after retirement. As an employee certainly a good investment, you can now do without it altogether. The continuation of a life insurance is likewise to be reconsidered, a disbursement and renewed investment can offer a substantially higher increase in value.
Liability insurance – a lifelong companion
For just about every German citizen, liability insurance is one of the most important insurance policies of all. Depending on the scope, claims caused in everyday life are covered with a sum insured of up to 5 million euros. Age doesn't matter, private liability insurance is essential even for you as a senior citizen.
An adjustment to the new life situation can still be worthwhile. An add-on such as bad debt coverage provides for your compensation should you come to harm and the culprit does not have suitable coverage.
Furthermore, it is important to check whether dependents such as children are still covered by your contract. If this is the case but no longer necessary, you can also save here by changing the tariff.
Motor vehicle insurance – compulsory for drivers
Mobility plays also in the pension age a large role. For many, a car is the best way to get from A to B. Especially the flexibility and convenience make the car for seniors the first choice, therefore the car insurance is also necessary for car owners in retirement. Whether full or partial coverage or only liability insurance depends on your own financial possibilities. The value and age of the vehicle are also crucial.
Great savings potential for you in the mileage. If the daily commute to work was made by car, it can pay off to adjust the mileage in the insurance policy downward. At the same time, if you use your car less frequently, the question arises whether your existing full or partial coverage insurance is still necessary.
Foreign travel health insurance – indispensable as a traveling senior
Many seniors use the time freed up in retirement to go on trips. Foreign health insurance is just as necessary as for employees, if not more important. The greatest attention should be paid to comprehensive protection and the guarantee of uninterrupted care, because cases of illness abroad always pose an increased risk of complications, depending on the travel destination. Special attention should be paid to a travel repatriation insurance, which brings you back to Germany within a few hours in case of emergency, either as an additional option in the foreign health insurance or as a stand-alone policy.
The comparison of different providers can pay off for you, the premiums differ in some cases considerably. It cannot be denied that older people generally have to pay higher premiums. The age limit is fluid and varies from provider to provider.
Home contents and residential buildings insurance – absolutely recommended in case of ownership
In addition to private liability insurance, household and homeowners insurance is also useful if you own valuable items or your own home. The risk of damage to material possessions due to environmental or external influences is not the rule, but still possible. The coverage prevents your pension from being burdened with high amounts for repairs or new purchases.
Make sure that your contract sufficiently covers the existing items or real estate, in case of a too low coverage amount only a part of the incurred expenses will be covered.
Private nursing care insurance – a sensible coverage in individual cases
Nobody likes to think about the topic of long-term care, but at the latest when you retire, you should give some thought to this troublesome area of life. Private long-term care insurance becomes important when state subsidies are no longer sufficient to cover the full costs. The insurance company makes up for the missing amounts to pay the professional service providers in full.
There are several types, the best known is the daily care allowance, it corresponds largely to the daily sickness allowance for employees and pays depending on the level of care a certain daily rate to you as a policyholder.
The decision about a supplementary insurance in the area of nursing care should be made as early as possible, since the amount of the premium depends largely on your age and state of health.
The right financial advisor for you as a pensioner – good things take time
If one searches the Internet or follows the news, one hears again and again from seniors and pensioners, who lost large parts of their fortune by bad investments completely. In the rarest cases, they are responsible for this misery themselves, because those who have never dealt with investments or deeper financial matters in their lives will not do so overnight at retirement age. Responsibility for these missteps is most often borne by consultants and agents selling financial services. Unsuitable products or investment packages, high-risk investments and a lack of overview can cause assets to shrink very quickly.
The following guide will help you find a professional financial advisor who is right for you personally.
Time is money – in the opposite sense
One thing in advance, there is nothing wrong if you have assets and want to invest or invest them to secure your retirement, but you should take your time in doing so. Send away financial advisors who make you a large number of offers in a short time or insist on concluding a contract.
If you feel fit enough, inform yourself about the basic laws and rules that govern the investment market. Do they follow trends, stock prices and different markets such as the real estate or commodities sector. The goal is to gain a certain basic knowledge, not to take the investment into your own hands, but to be able to ask specific and to-the-point questions during consultation. With a little knowledge, you can guess what goals your financial advisor is pursuing and whether a certain level of professionalism is present. If you don't trust yourself with this task, don't go to the consultation alone, have someone you trust accompany you.
How much and where to invest – set clear goals for yourself
Before you go to a financial advisor, be clear about the objective of your investment. Do you want to increase your pension, create something long-term for children and grandchildren, or generate selective profits through targeted investments? Write down your goals and conditions and take the notes with you to the consultation appointment. A professional financial advisor will gradually address the points noted and answer questions as well as ambiguities in a solution-oriented manner, explain technical terms and in no case push you to a deal.
Obtain information about the financial advisor – on the Internet you can find everything
If a financial advisor or a credit institution comes to you and makes you an offer, first look for information about the seller himself. The Internet is a good place to get reviews, opinions and experiences about a person or company. The World Wide Web has become as much a part of everyday life for seniors as it is for the younger generation. If you do not have Internet access or experience, ask children, grandchildren or acquaintances to help you find information.
Keep in mind that information on the Internet may not always be true. In order to get an approximate picture of the consultant, the company or the bank, the WWW is nevertheless very suitable. The available information allows you to draw initial conclusions about the professionalism and skill of the financial advisor.
Fee or commission – what does it mean and which is better?
As a rule, financial advisors are paid on a commission basis. This means that for each contract concluded, they receive a certain amount, which is based on the amount of the contract, as payment. The more products or packages the advisor sells, the more they earn. With investment sums of several tens or hundreds of thousands of euros, the payoff is very good with a high sales figure.
The flip side of the coin is that many financial advisors and bank employees take advantage of the ignorance and low resilience of older people in particular to massively increase their sales figures and thus earnings. The goal is not to provide the client with the best investment or asset package, but to sell a completely unsuitable and risky but personally very lucrative product through technical words, fast speech, exuberant sympathy and unrealistic profit prospects. Nevertheless, payment on a commission basis does not allow a blanket statement to be made about the professionalism of a financial advisor.
Financial advisors who are paid on a fee basis will bill you for the time they spend advising you. Costs can be up to 250 euros per hour, but the advisor does not receive any remuneration for concluding a contract. This has the advantage that there is no pressure to sell, which has a positive effect on earnings. You can be sure that the financial advisor will take enough time to enlighten you about details and ambiguities. Make sure, however, that the advice is not dragged out by a multitude of offers.
The house buying guide for seniors – owning a home in retirement
The dream of owning your own home is not only a dream for young people and families; pensioners and senior citizens are also enthusiastic about the possibility of owning their own property. The reasons are manifold, get out of the cramped city apartment, into the countryside and enjoy the peace and quiet of a rural area. If you have sufficient equity, financing a property can be less than the monthly cost of a rental property. The purchase of a home is a not inconsiderable investment that needs to be well thought out. From the following guide you can see what you need to consider so that the purchase of your own home does not go wrong and end in chaos.
Step 1 – the financial question
Before buying a property, it is important to clarify one's own financial situation. The result decides which and whether you can afford a home at all. In addition to the one-time financial outlay, there are also the ongoing costs of a building. If you do not have any experience with houses, keep in mind that the costs for energy, water and maintenance are often much higher than with a rental or condominium apartment.
If you have sufficient equity, through life insurance payouts or savings, you can take advantage of these assets when taking out a loan. Unlike younger people, you have an unconditional income that cannot be lost due to unemployment or illness. At the same time, reinvesting assets in a property can reduce the loan amount, lowering the term, interest burden and monthly payments. A good financing option is a mortgage loan.
Step 2 – plan for the future
Nobody can prevent aging, with the right planning for your own home you can make it as comfortable and easy as possible for yourself. When choosing a property, make sure that all important places on the property and in the house are easily accessible.
Conversions in the direction of accessibility should also be easy to carry out. Spacious rooms, wide staircases and an open floor plan make it easier and less costly to equip the home with aids for everyday living.
Depending on your mobility, it is advisable to choose a property with important places such as grocery stores, banks and post offices in its vicinity. The availability of public transportation can increase the radius of freedom of movement.
Step 3 – Find suitable properties
The largest number of offers can be found on the Internet. Real estate exchanges and advertisements facilitate the search for a suitable home, but you still need to be proactive. Contact with the real estate agent or seller, viewing appointments and possible price negotiations as well as going to the notary are completely in your hands.
It is easier to hire a consultant who will select properties tailored to your wishes and thus relieve you of much of the workload.
Step 4 – the inspection
If a suitable object is selected, the inspection date takes place. First and foremost, they must feel comfortable in the object. Your pure intuition is not everything, however, ask critical questions about the structural condition, about the heating and thermal insulation systems and their future viability. Ask to see important documents such as energy certificates, title deeds, a summary of the technical details of the property and any expert reports. The inspection time should be around 20 minutes, if you stay longer, the feeling of the first impression is lost.
As a period for the inspection are particularly suitable mornings during the week. At this time you will get the best impression of the property through daylight and can get a picture of the everyday activity around the property. Pay attention to the usability and accessibility of rooms, are plumbing fixtures located on the first floor, and are important places such as living rooms, bedrooms, and bathrooms designed for possible remodels.
The condition of the property also plays an important role. Clarify with the broker or seller any renovations or repairs before the purchase and find an agreement on who has to pay for it. If in doubt, call in an external appraiser to inspect critical areas such as windows, insulation and the roof and uncover any deficiencies.
Step 5 – the purchase
Once the decision has been made and you have decided on a property, you enter the final phase of buying real estate. The walk will lead you together with the seller to a notary, who has prepared bureaucratic matters such as the change in the land register and the purchase agreement.
Do not be too early for the appointment. A longer stay in the waiting room or office could encourage the seller to renegotiate with you in the last 10 minutes to get a higher purchase price. The notary will subsequently provide the contracts for signature. The money is released to the seller, in return you then receive the keys and the existing documentation for your new home.
Credit cards for seniors – the right one among many
Credit cards still enjoy a certain niche existence in Germany. Only about one third of all German citizens have this means of payment, thus very few in international comparison. Thereby, the credit card can massively facilitate many payment transactions. For seniors, cashless payment transactions can be a convenient alternative to traditional means of payment, especially abroad or on the Internet can benefit from the simplicity.
Different types of cards and fees – an overview
The number of different credit cards is large. In addition to the traditional credit institutions, there are a large number of other companies that provide different models.
Prepaid: the prepaid credit card works like a cell phone card. Before you can use it, they have to load the card's account with a certain amount of money. This option offers the best cost control over your expenses.
Debit: the credit card is directly linked to your checking account, the amounts spent are debited directly.
Charge: At the end of each month, the accumulated payments are debited from your account at once.
Revolving: By paying in installments over a longer period of time amounts are debited from the linked current account until the loan amount is repaid. High interest rates may apply. By making a one-time payment, they can balance the amount and avoid the high interest burden.
In terms of fees, the various cards differ sometimes significantly. A comparison is worthwhile in any case, because depending on the intended use, not inconsiderable sums can be saved when choosing the right credit card.
5 credit cards in comparison – the right one for almost everyone
1. Barclaycard New Visa
With the New Visa, Barclaycard offers a revolving credit card free of charge. The card is applied for via the Internet, the check of Schufa and an approval or rejection are made within minutes.
If the card is charged, you have up to 2 months to clear the balance, only then Barclaycard charges interest and the installment payment begins. On the positive side, there are no fees for cash withdrawals within the euro area. Outside the EU, 1.99 percent of the amount is due, still very little in comparison. The Visalabel guarantees worldwide usability, the card can be linked to your existing current account.
2. ICS Cards – Visa World Card
There are no annual fees for the Visa World Card from ICS. Revolving allows you to pay off the outstanding loan amount in installments, these amount to 2.5 percent of the outstanding amount, but at least 20 euros. If the account is balanced by a one-time payment, there is no interest, otherwise it is about 14.85 percent. A one-time payment is therefore recommended. Furthermore, there are fees for the use of ATMs n the amount of 1.85 or 2 percent of the turnover, depending on the use in the EU or in the EU abroad. You can set the PIN yourself, continue to use your existing checking account. If you wish to receive a paper bill, this costs 1 euro per month, otherwise the statements take place in the Internet portal. In addition, you can take out an insurance policy that covers you in the event of non-payment through no fault of your own.
3. DKB Bank – DKB Visa Card
With the DKB Visa Card there are no annual fees either. The application for this card is accompanied by the simultaneous opening of a current account. For cash withdrawals at the counter, the fees for use are 3 percent of the turnover, but at least 5 euros; there are no fees at ATMs worldwide. In addition, you receive a free partner card. The principle follows the charge, monthly you will receive a credit card statement online or in paper form (1 Euro fee). The interest on the overdraft facility is 6.9 percent, for a balance up to 100.000 euros on the Visa Card you will receive 0.4 percent interest.
4. Advanzia Bank – Master Card Gold free of charge
The Master Card Gold of Advanzia Bank is a revolving card free of charge. To clear the balance, you have up to 7 weeks, after which interest accrues at 22.90 percent for cash withdrawals and 19.94 percent for purchases on the credit amount. The special feature is that the interest depends on your credit rating. In the case of a one-time payment, these are waived. There are no fees for cash withdrawals anywhere in the world, and paper invoices are also free of charge. When traveling, you get free travel insurance if you pay at least 50 percent of the transportation costs with the Master Card Gold.
5. Hanseatic Bank – GenialCard
The fee-free GenialCard from Hanseatic Bank follows the revolving principle. For partial payments of the credit amount 16.90 percent interest on the turnover, a one-time payment is interest-free and is debited directly from your checking account. Switching between partial and one-time payment is possible at any time. The withdrawal limit is up to 2500 euros, part of which can be transferred directly online to the current account without the use of the card. The decision on an addition or rejection is made immediately when applying online. There is no minimum turnover, for expenditures abroad 1.75 percent of the sum are due as a fee, at ATMs 3 percent but at least 5.95 euros.
The right investment for seniors – how to find it
Retirement is usually accompanied by the payment of life or endowment insurance policies. Thereafter, as a rule, several tens or even around 100.000 euros on the account again. Actually a reason for joy for you, because a handsome sum on the account soothes the financial conscience immensely. 20-30 years ago it was no problem to leave your money in a call or time deposit account, high interest rates and compound interest generated good returns.
The volatility of the capital market, several financial crises and bank failures in 2006-2016 have had a negative impact on this form of investment. Interest rates between 0.01 and 0.05 percent are no longer sufficient to compensate for inflation, let alone generate profits. To avoid a creeping loss, you need to actively search to find the right investment for yourself in retirement.
First step to investing money – get an overview
On the way to the right investment of your capital, you must first get an overview of your financial situation. Create a balance sheet in which income, expenses and savings as well as free capital are recorded. Consider whether additional major purchases, travel or expenses are necessary or planned. Check whether there is potential for savings in insurance (link to article) and taxes (link to article), for example. This gives you an overview of how much of your money can be invested, because depending on the amount, investment options differ in terms of their profitability.
Define goals – what do you want to achieve with the investment
Consider what goal you want to achieve with your investment. This influences whether capital should be invested safely or risky, short or long term, broadly spread or concentrated.
Consulting a financial advisor can help you not only to find the right investment strategy, but also to be clear about the goals you want to achieve.
The time changes everything – in the meantime own initiative is in demand
In general, the majority of seniors tend to safe investments, the amount of work is low, the risk of losing the assets also. The downside is the low return, which cannot cover the increased capital requirements or, worse, compensate for inflation due to increasing life expectancy. The changes on the capital markets make a large measure of self-initiative indispensable in today's time.
To find the right investment in retirement, you need to become aware of the different investment options, with or without a financial advisor. The Internet offers probably the largest collection of knowledge you can acquire. A rough knowledge of the numerous investment possibilities can already give you a certain investment direction. A look at current specialist literature or trustworthy sources will further deepen your knowledge and help you make a final decision.
At the same time, you should monitor the relevant areas of the capital and economic markets in order to be able to react to strong changes in good time or, in case of doubt, to pursue a different investment strategy.
The effort is not to be underestimated, but still feasible. You should not become a specialist in financial issues and spend weeks or months studying all the technical literature, but know about your investment strategy and be able to react if necessary.
Risk – one of the most difficult decisions
The question of how risky you want to invest your capital depends not only on the return target but also on your financial possibilities. Fact is, who wants to achieve a good net yield, must take a higher risk. If you benefit from a good state pension and other income, losses can be absorbed more easily through investment transactions than if this is just enough to cover your living expenses. Consider how much loss you can afford and include this in your decision for the right investment.
Conclusion – effort equals return
The profit you can make from your investments depends largely on the effort you put into them. It is undisputed that this has been increasing over the last 30 years. In order to find the right investment as a senior, you have to study the matter intensively in the meantime and be aware of your current situation.
Credit from 65 – what do you need to consider as a pensioner?
The credit business in Germany is booming. Many people use credit to invest in real estate, cars, other valuables or luxury items. Classical banks, Internet credit houses or credit exchanges on the Internet offer a large number of offers. The average employee is between 30 and 45 years old. However, even you as a pensioner may find yourself in a situation where a loan is unavoidable or your investment plans make borrowing money unavoidable.
What types of credit are there – earmarked or not
Loans generally fall into two broad categories. Earmarked or for free disposal. Earmarked loans are primarily used for the acquisition of material valuables. The purpose of use is specified in the loan agreement, the debtor is obliged not to use the money for other purposes. The sense comes from the equivalent value of the objects purchased. These represent a security for the creditor, which serves as compensation in case of credit default. Loans of this type are granted primarily for the purchase of real estate, motor vehicles or luxury goods.
Loans for free disposal are often lightning or fast loans, which are given for the settlement of bills and other urgent payments.
Repairs to the house and motor vehicle can rarely be postponed, as there is a threat of cuts in everyday life. In the absence of a corresponding counterpart, the conditions and default consequences are much more severe than if a counterpart existed.
Requirements – the same for everyone except for pensioners
If you want to take out a loan as a pensioner, you will quickly notice that special rules apply to you when granting credit. In general, a perfect Schufa, a regular income and the absence of other outstanding loans are basic requirements for a successful commitment. Depending on the type of loan, different terms and loan amounts are possible.
For you as a pensioner, especially from 65, borrowing can become a problem. At the same time you have one of the safest incomes at all with the legal and possible further private and company pensions. Nevertheless, almost all lenders see retired people over 65 as high-risk customers and not as a special target group.
In contrast to young or middle age, statistically speaking, from the age of 65 onwards, you accumulate. years of life sickness and death. Banks and credit providers take these increased probabilities as a basis and calculate a massively increased risk of default from them. From the 75. Taking out a loan is virtually impossible before the age of 65.
Nevertheless, taking out a loan is not impossible, depending on your personal financial situation and the type of loan, a commitment can still be made if you consider a few points.
A clean credit history – nothing works without it
Since you belong as a pensioner from 65 unfavorably already to a risk group, an impeccable Schufa is more important than ever. If you have never had problems in the credit business or as a debtor before, no problems should arise. With negative Schufa entries, the probability of receiving a commitment immediately drops to zero, as you combine two danger groups in one person. At the latest during the internal review and classification in a rating table, you are eliminated as a reliable borrower.
Loan type – collateral makes it easier
If you as a borrower have tangible valuables, you can list them as collateral to the bank or creditor. This not only results in more favorable conditions, but also increases the likelihood of receiving a positive loan approval at the age of around 65 years. This also applies to earmarked loans, as the purchase automatically serves as an object of liability.
Keep in mind that for lightning or instant loans, as well as loans that are not earmarked for a specific purpose, tangible items are not or very rarely accepted. The administrative effort and time required to obtain the necessary documents are simply too high and contradict the essence of fast processing and disbursement.
Guarantees – a guarantor makes it easier
If you can use a guarantor, such as your children, grandchildren or relatives and acquaintances of a younger age, the risk of default decreases considerably and it becomes more likely that a loan will be granted to you. Pay attention not only to your own creditworthiness, but also to that of the guarantor who has to step in as debtor in case of emergency.
Compare the offers anyway – it's worth it
If you apply for and are approved for a loan as a pensioner over 65, please note that you will still have to pay a higher interest burden and installments than the average borrower. Depending on the provider, the conditions also differ considerably. Set yourself a precise payment plan in terms of term and amount, taking out more money than necessary should be avoided.
Loan default insurance protects you and especially your dependents in the event of illness, default or death.
Beware of dubious offers – special senior loans do not exist
If you come across special loans on the Internet that are supposedly suitable for seniors, do not go into it further. There are simply no loans tailored to the target group you represent.
Is a call money account suitable for seniors?? – an analysis
The investment options for seniors are extremely diverse. Bank withdrawal plans, government bonds, stocks, real estate or savings bonds represent only a small part of the options. In addition, a call money account is another investment option for pensioners. For which seniors it is worthwhile, depends on your own economic situation, as well as the overall state of the capital market. The interest rate and its stability are decisive for risk and return and provide information about the success or non-success of the investment.
The essence of the overnight deposit account – flexibility and risk
Free financial funds are deposited in a call account, generating interest income at set intervals. Depending on the provider, this can be monthly, quarterly or annually. The amount at which interest is paid on the sum can be changed by the bank on a daily basis and is primarily dependent on the key interest rate of the European Central Bank.
With short interest rates and high percentages, the effect of compound interest can have a strong positive impact on the credit balance. With low interest rates between 0.5 and 1 percent, this effect hardly appears or does not appear at all.
In contrast to a time deposit account or savings book, where interest rates are usually fixed for one year, the risk of low returns due to a collapse in interest rates is very high. In the worst case, the earnings are not sufficient to compensate for the inflation rate. The speed of demonetization is higher than the increase of the capital, loss is the consequence.
The high flexibility of being able to dispose of the money at any time is advantageous. Meanwhile, most overnight deposit accounts are online-based, transfers can be made on any banking day, and the cost of administration and staff is eliminated. The higher risk of loss is counterbalanced by the possibility of a large, high-frequency return, if the situation of the capital market allows it.
Minimum deposits and notice periods do not exist, the current account corresponds to a current account except for the overdraft facility, sometimes even with EC card.
How risk-averse are you – or can you be as a pensioner
The question of whether an overnight deposit account is suitable for you is influenced by several significant factors. At the beginning there is the question of one's own willingness to take risks. Due to the large fluctuation of interest rates, high returns can be achieved, but losses must be accepted if interest rates fall. Ask yourself whether your financial resources allow investments with increased risk at all.
If your income and savings are just enough to cover your living expenses, the available capital should be invested as safely and long-term as possible. Savings accounts or time deposit accounts are a more suitable investment. This also applies if the additional income is necessary to ensure sufficient basic security in the first place.
If you have a sufficiently high pension and larger sums from a paid-out life insurance policy at your disposal, it may be worthwhile to put some of the money in a call money account. Savings goals can be easily achieved with overnight deposit accounts. If a trip is planned, the new acquisition of a passenger car or a new interior decoration you can achieve a good yield at the same time beside the regular money entrance on the call money account. The interest paid out allows you to reach the required amount more quickly. Unplanned expenses can be dealt with quickly, since the money is available at any time.
The right call money account for you – a comparison is worthwhile
In addition to traditional credit institutions, most internet banks provide a call money account. To attract new customers, many financial institutions offer a fixed interest rate for three to six months. This allows you to benefit from fixed interest rates during the initial period of the overnight deposit, which are significantly higher than the level of savings accounts or time deposit accounts. After that, the interest rate aligns with the prevailing level.
To continue to benefit from high interest rates, it is possible to change the call money account. Non-existent notice periods make the selection of a new offer simple and quick.
Conclusion – is a call money account suitable as an investment for seniors??
If you are a retiree with sufficient funds, investing some of them in a demand deposit account is a wise investment. The greatest profits can be made by fixing the interest rate for several months. If you plan to travel or pursue cost-intensive hobbies during your retirement, the call money account can prove to be a better alternative to other savings accounts, provided you take care of the regular reallocation of your assets when interest rates approach the lower level of existing customers.
Unexpected costs or financially costly situations such as cures, hospital stays or injuries and treatments abroad can be paid directly due to the constant availability, without creating financial bottlenecks or having to take out expensive loans.
The account especially for seniors – a comparison
The current account belongs to the everyday life for seniors in the meantime just like for each other citizen also. In contrast to the credit problem, many banks have adapted to the target group of seniors and retirees. No account maintenance fees and supplementary call money or time deposit accounts enable retirees to conveniently invest larger sums of money without having to be a customer at a large number of different credit institutions. Convenient online banking and EC cards are now just as important to many seniors as personal service at the bank counter.
In this comparison you will find an overview of various current account providers, which are suitable for you in retirement.
5 Current accounts in comparison – it depends on the personal requirements
1. 1822direkt – Current account
The current account of 1822direkt GmbH is already available from a monthly credit without account management fees. This condition is already fulfilled for you as a senior through your monthly pension receipt. The 1822direkt GmbH is a subsidiary of the Sparkasse Frankfurt, as an EC card you get a Sparkassencard and can withdraw cash free of charge at all suitable ATMs. This also applies to other European countries. In supermarkets with cash service, withdrawal is possible from 20 euros purchase value. The overdraft interest rate is 7.43 percent. The additional credit card offered is free of charge from an annual turnover of 4000 euros.
There are no fees for transfers via the Internet, standing orders, account statements, online and telephone banking. Cheque deposits will be charged at 2.50 euros, transfers by voice computer and telephone at 1.50 euros.
2. netbank – current account
netbank is a subsidiary of Augsburger Aktienbank AG and offers a free current account for seniors. The netbank girocard allows you to withdraw cash free of charge at ATMs of the CashPool group, which includes almost all credit institutions in Germany, except savings banks and credit unions. Only for the current account balance by SMS 1.50 euros per month must be paid, the EC card is free due to your regular pension receipt. The linked call money account is subject to variable interest rates, the interest rate is around 0.01 percent. The overdraft facility is charged with 8 percent interest when used. In addition, they can choose between a MasterCard Classic or Platinum and a prepaid credit card. If you travel abroad a lot, the Platinum version offers additional insurance.
3. norisbank GmbH – Top current account
As a pensioner, you do not have to pay any account maintenance fees for the norisbank GmbH top current account. The EC card allows cash to be withdrawn free of charge from cash machines belonging to the CashGroup, which includes norisbank itself, Commerzbanken, HypoVereinsbanken, Deutsche and Postbanken. For cash deposits you can use the ATMs of Deutsche Bank. The current account can be combined with a call money account, the credit balance is variably remunerated with about 0.20 percent interest. Distributions are made on a quarterly basis, and available amounts are available on a daily basis. The opening and administration is done online, with sufficient creditworthiness you will receive a MasterCard.
4. Deutsche Postbank AG – Postbank Giro Plus
The Postbank Giro Plus account is free of charge in the first month with a monthly cash inflow of 1000 euros or more. After that, a flat fee of 3.90 euros is charged. Postbank attaches great importance to the online management of the account. An internet portal as well as apps for all common smartphones (iOS, Android, Windows) increase flexibility and overview of your financial status. Transfers and standing orders have also been digitized; no need to visit a branch for such transactions. The conditions of the call money account are variable, credit balance is charged interest at around 0.01 percent. 0.99 euros are charged for the transfer by voucher, 0.90 euros for the monthly dispatch of account statements. Overdraft facility and tolerated overdraft are subject to interest rates of 10.55 and 15.95 percent. The VisaCard is free in the first year, from the second 29 euros are due.
5. comdirekt bank AG – Current account
There are no account management fees, irrespective of the amount of money received into the comdirect bank Ag current account each month. Also based online, you have the possibility to control your entire payment transactions via the Internet, you can set the pin for your EC card yourself. As comdirect bank AG is a subsidiary of Commerzbank, you can withdraw cash free of charge from ATMs at Commerzbank and its partners in the cash group. Interest rates for the overdraft are 8.95 percent, for the tolerated overdraft 13.45. In addition, you have a free call money account (interest rate around 0.1 percent, variable) and a securities account. If your credit rating allows you to apply for a VisaCard, this is also free of charge. If you have any questions or problems, customer support is available around the clock, 7 days a week.
Mortgage guide for seniors – financial path to home ownership
For many Germans, one or more properties are the retirement provision par excellence. The majority of the population is with the procurement of the own home between the 30. 45 and. Person employed for the first year of life. With a certain amount of equity and a loan, real estate is purchased or newly built. If you have not yet thought about owning your own home, but have sufficient financial resources when you retire, the idea of an age-appropriate retirement home can be realized simply by taking out a mortgage loan.
The mortgage itself – a little basic knowledge
The word mortgage comes from the Greek and means translated Unterpfand. In the capital business the mortgage represents a mortgage right, with admission the creditor is granted a co-ownership right at the acquired real estate or property. Unlike a normal loan, even though the loan is earmarked, the mortgage is even more closely tied to the property. The mortgage lender is registered as co-owner of the building in the land register. The note remains intact even after the debt has been paid off; an erasable receipt from the bank after the debt has been paid off proves that the mortgagee is debt-free.
Mortgage or loan – an important question for you as a senior citizen
Before you can even think about buying a property, you need to check whether your financial situation allows the purchase at all. Often the nevertheless lush amounts from life or endowment insurance are not enough to finance the home completely and without help. The standard way via a loan can become a problem for you as a pensioner, especially from 65 onwards. Read more in detail in the article Loans (insert link).
Mortgages can be a good alternative if you have enough equity and want to invest in a property. If the available capital is around 45 – 50 percent of the purchase price of the building, you have a good chance of getting a mortgage loan from the bank. The purpose of the mortgage is directly tied to the purchase of the property, and the bank is a co-owner until the debt is paid off. This extremely large security for the creditor often results in more favorable conditions than for loans.
Conditions and terms – what is usual?
The term and the amount of the installments depend significantly on the mortgage amount as well as on your financial capacity. The interest rates result from the situation of the money and capital markets, generally they range between 2.5 and 4 percent, compared to a normal real estate loan relatively favorable. The term can be determined to a certain extent, 20 – 30 years are the rule.
Advantages of mortgage financing – significant cost reduction
Moving into a mortgage-financed home can mean a massive cost savings for you. Rents for apartments or houses have become increasingly expensive, especially in cities and densely populated areas. The acquisition of a home initially means a large investment and usually debt. In times of low interest rates, however, it is hardly worthwhile for you to invest free capital in fixed deposit accounts or savings books. In connection with a mortgage and the move into a home of your own, you can reduce excessive rents by up to half. Of course, this does not apply across the board for all residences in Germany, a close examination of the rental prices, as well as obtaining a mortgage offer are mandatory.
Consequences in case of default – make sure you pay on time
A payment default is very unlikely with legal pension and additional income. If you nevertheless default on installments, you face penalties of varying severity, depending on the provider. These can range from reminders and additional fees to penalties and even foreclosure of the property. Since the creditor is a co-owner of the property and usually about half of the value is covered by your own financial resources, the chance of the bank to recover the full mortgage amount is very high, even if the building is sold below market value.
In the event of death, the mortgage contract is either transferred to your direct heirs, who as legal successors are obligated to fulfill the contract to the end upon acceptance of the inheritance. In the event of a disclaimer or lack of heirs, in most cases the property is sold by the bank to settle the outstanding mortgage amount.
Tax saving tips for seniors – various possibilities
Since 2004, senior citizens and pensioners are also liable to pay taxes like normal employees. With the coming into force of the Retirement Income Act, tax must be paid on all income above the gross tax-free threshold. This amounted to 8472 euros for singles until 2015 and 16.944 euros for married couples; as of 2016, allowances of 8652, respectively 17.304 euros.
When you retire, you will be asked by your responsible tax office to submit a tax return, in which you must truthfully declare your income. In addition to the state pension, this includes income such as rental and capital income, Riester and company pensions, as well as salaries and wages from continued employment relationships.
The sum by which the tax-free amount is exceeded serves as the basis for determining the tax burden. The easiest way to save taxes is to claim deductible expenses, which reduces your income tax calculation base. The following tips will help you to legally reduce your contributions to the state with little effort.
Income-related expenses – the lump-sum commuter allowance for senior citizens
The best-known example of deductible income-related expenses is the commuter allowance. Upon termination, these cease to apply, but the tax office will still deduct a lump sum of 102 euros from your taxable income as income-related expenses when you file your tax return. You can increase the amount of your income-related expenses by filling out the Appendix R and attaching invoices to it. This goes if, for example, you use a tax or pension consultant or pay union dues. Furthermore, costs for the current account, interest on loans for pension contributions paid in arrears or legal costs for pensions are also included.
Special expenses – often higher than 36 euros
The special expenses item reduces your taxable income by a flat rate of 36 euros per year. Pension expenses can greatly increase this amount, the calculation may be very complex.
Divided into old-age provision and other provision expenses. The first category includes contributions to Rurup pensions, occupational pension funds and agricultural pension funds.
The second group includes contributions to health and long-term care insurance, accident, liability and life insurance, as well as pension and endowment insurance policies started before 2005.
As of 2011, 72 percent of contributions for old-age provision expenses could be deducted up to 20.000 euros for singles and 40.000 euros can be claimed for married couples. The percentage increases every year by two percentage points, until the year 2025. From then on, the full 100 percent of your expenses are deductible.
The other pension expenses are much lower in your allowances, only the expenses for basic care and health insurance are completely deductible in the area of special expenses.
Other special expenses to reduce taxes
Household allowance
If you need a home help in the course of your time as a pensioner for health reasons, you can claim a maximum of 4000 euros per year as special expenses. The total is calculated from deductible 20 percent of a maximum of 20.000 euros. For this purpose, the domestic help must be in an employment relationship subject to social insurance contributions, which you must prove to the tax office.
Handyman
Necessary renovation and maintenance work on your real estate can also be claimed as special expenses. The maximum amount is one fifth of 6000 euros per year, which corresponds to 1200 euros by which your taxable income shrinks.
Donations, grants and church taxes
The issue of donations and church tax varies in complexity depending on the amount. In general, donations, grants and membership fees to non-profit associations and tax-privileged organizations as well as to scientific, church and cultural institutions can be claimed at a maximum of 20 percent of your total income.
Up to an amount of 200 euros, a simple bank transfer or cash deposit slip, bank statement or booking confirmation is sufficient. For associations exempt from corporate income tax, this simplified proof must be supplemented with a confirmation of tax exemption.
Larger sums must be documented by a donation receipt according to the official model, formerly donation receipt. The receiver issues it to you or sends it directly to the responsible tax office.
Extraordinary burdens – individual deductible expenses
Extraordinary burdens do not arise for every taxable pensioner. A lump sum does not exist, the deductible amounts are determined by your personal needs and situation.
For seniors, extraordinary burdens mainly refer to the costs incurred in health and medical care. Expenses for doctors and medical treatment, which exceed your financial possibilities, as well as cure and hospital stays can be claimed. The costs of drugs or medicines which are not covered by the health insurance can also be declared.
Age relief amount – depending on the year of birth and the year of retirement
If you generate further income in addition to the state pension, such as rental or ancillary income, you can claim the old-age relief amount. Similar to the pension allowance, part of the additional income is tax-exempt. The amount of the allowance is calculated depending on their age, income ratio and pension start and can be up to 1000 euros.
Tax advisor or not – if in doubt, play it safe
If a large number of the above tax breaks apply to you, you should think about consulting a tax advisor. This can provide you with an error-free tax return optimized for savings. With little knowledge of the subject matter and its complexity, mistakes can easily be made that may cost a lot of money. Optimally, the costs for the tax advisor can be deducted as income-related expenses.
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