Many state allowances and benefits are linked to the calendar year. Get an overview here of which of the following points could also be relevant for you and take the opportunity to optimize your finances for the year 2021.
1. Save taxes with the basic pension
Since 2005, the basic (or Rürup) pension has offered the option of paying tax benefits into private retirement provision. In contrast to the statutory pension, the investment strategy can be flexibly selected in the savings phase. Many of our customers are now building their basic pension credit with stock ETFs very profitably and inexpensively. We would like to recommend starting with a small monthly amount and checking annually which additional payments are possible and sensible from a tax point of view. In this way you remain flexible and optimize the cost structure of the contracts. For 2021, the maximum amount of the deductible contributions is 25,787 euros per year for single persons and 51,574 euros per year for married couples / registered partners. 92% of this can currently be offset against tax. Payments into the statutory pension or into pension funds are deducted from the maximum amount.
For everyone who wants to take advantage of this tax-subsidized old-age provision for themselves or who would like to pay into existing contracts: don’t wait until December to make an appointment. You can decide in peace and quiet and count on a secure transaction.
2. Additional payments in Riester and company pension contracts
Riester savers should find out before the end of the year whether they have received all government allowances. The entitlement expires after two years – so the allowances for 2018 must be applied for by the end of December at the latest. A so-called permanent allowance application makes the annual applications superfluous.
In order to receive the full allowances, the so-called minimum personal contribution must be paid into the contract. The calculation basis for this is 4% of the previous year’s gross income. The allowances are deducted from this. In a Riester contract, at least the basic contribution of 60 euros per year must be paid, even if the minimum personal contribution is lower.
With a special payment at the end of the year, the minimum payment can still be guaranteed in order to make full use of the state allowances. In addition, an additional payment or top-up can also be useful for Riester contracts (e.g. if the partner (s) has a higher income), because up to EUR 2,100 per year and contract can be offset against tax.
Annual special payments are also possible in your company pension plans. The maximum occupational pension contribution in 2021 for direct insurance is EUR 568 (month) or EUR 6,816 (year) tax-free (8% of the contribution assessment ceiling of the GRV West). The maximum contribution for exemption from social insurance is EUR 284 (month) or EUR 3,408 (year), corresponding to 4% of the contribution assessment ceiling of the GRV West. We would be happy to advise you whether it would be advantageous for you to convert your salary this year.
3. Cost advantages in health insurance before the turn of the year.
December 31st is not only an important key date for saving taxes, but also offers you tangible advantages when it comes to protecting your health, for example through health or disability insurance. In terms of insurance, you age by a year at the turn of the year, which leads to premium surcharges of up to 5% over the entire term for new contracts, which you can save by taking out in 2021. In addition, with health insurances, for example in the area of the additional dental area, there are scales of benefits in the first years of insurance, which often amount to 1,000 euros and more. An application made in the last few weeks of 2021 has the effect of an entire insurance year, which can give you several hundred euros in benefits.
If you want to talk to us about the review of your health coverage, we recommend that you use the coming weeks.