Young people in Bavaria: This is how retirement planning works now!

Young people in Bavaria: This is how retirement planning works now!

Planning for retirement is a nerve-wracking matter for many young people. However, a current study by 'MetallRente' from 2022 shows that not even one in three young people between the ages of 17 and 21 have sufficient knowledge on this topic. This highlights the urgency of thinking about your own financial future early on. It is important to take various aspects of retirement planning into account in order to be well protected in old age.

An example of how to deal with this topic is Jacob, a 24-year-old professional firefighter from Allersberg near Nuremberg. He has decided to deepen his knowledge of retirement planning and is accompanied by a camera team from Bayerischer Rundfunk. Jacob says that the topic gives him a stomach ache because it previously seemed distant to him. This experience could serve as an inspiration for other young people to also consider their financial future.

Important components of retirement planning

Christian Richter from Consumer Service Bavaria emphasizes how important it is to start thinking about retirement planning early on. Jacob's first task is to identify the essential building blocks for solid retirement planning. In a conversation with his older friend Basti, who also works for the fire department and has bought a house, it becomes clear that even experienced colleagues have uncertainties about their existing insurance policies. Basti expresses concerns about whether his traditional life insurance is still the best choice.

In this context, Richter recommends considering alternative products. He rates classic life insurance as less effective and suggests high-yield alternatives such as fund policies. Buying real estate is also considered an important part of retirement planning, with Richter emphasizing that debt should be avoided. For a balanced portfolio, he recommends a mix of real estate, private pension provision based on ETFs or funds, and company pension provision.

Financial perspectives and challenges

Jacob receives current pension information from the pension insurance company, which shows him a predicted pension of 1,645 euros. He finds this to be little and therefore begins to think about his wishes and goals: a relaxed pension with a paid-off house and two to three children. Richter also addresses an important aspect of retirement planning that is often overlooked: inflation. He warns that this is often not taken into account in pension calculators and emphasizes the need to save independently for retirement.

Jacob's third task is to identify concrete savings options for retirement. So far he has only saved for short-term expenses and not specifically for his pension. Despite initial concerns, Richter is optimistic that Jacob is taking the issue of retirement planning seriously and will take the right steps to be well positioned early on.

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