Voluntary pension for freelancer - low income

seanacarden82

Member

Member since 13 March 2024

seanacarden82

13 March 2024 08:37:22

seanacarden82

13 March 2024 08:37:22

Hi!

I wondered if anyone may be able to help?

Im 41yrs old and working as a freelancer

So far i have not paid into a pension

i understand that i can use the voluntary contribution pension scheme.

with my earnings, i can only pay 100 euro a month.

With this, if i pay in until retirement, so say 20 years of contributions, will this offer any kind of retirement pension, that is worth having?

i have tried using a pension calculator, but can't make any sense of it.

if anyone has any kind of informed idea, that would be great!

thanks

beppi

Germany - Singapore Expert

Member since 08 August 2010

World Citizen

Germany & Singapore Expert

beppi

13 March 2024 12:18:40

15174

beppi

13 March 2024 12:18:40

15174

World Citizen

I don't know if it is POSSIBLE contribute voluntarily - you'd have to contact your relevant "Rentenkasse" to clarify this.

But if you do this, your contributions will of course not be matched (i.e. doubled) by an employer. This makes it unattractive for most self-employed, who usually prefer retirement savings in other financial vehicles (ask your bank!).

I.e., if you pay in 100€/month for 20 year and plan on drawing your pension for another 20 years afterwards, you will only get out the same amount per month (plus inflation adjustment, which is regularly done for this government-backed "investment"), not more. You decide yourself whether this is worth it!