It is assumed that everyone between the ages of 70 and 80 percent of their current income needs to maintain their accustomed standard of living. In individual cases, the actual need also depends on whether there is home ownership or rent is paid and whether someone lives alone or can share the costs that may arise with another person.
It doesn't work without private provision
Experts have calculated that the actual income that workers can expect later today will only be around 60 percent of their current income. This results in a gap between 10 and 20 percent of the theoretically calculated demand. It doesn't sound like much at first, but it becomes noticeable too quickly in everyday life! If you want to maintain the usual standard of living, you live permanently above your means and can quickly fall into the debt trap because the required money has to be obtained elsewhere.
The gap can only be closed by private provision, because this is not possible legally or professionally. A variant is the mixed life insurance, with which you and your relatives are to be insured. If something should happen to you, your relatives are financially covered by life insurance, which is particularly necessary if you are the sole earner or if the owner-occupied home has not yet been paid for. Protection is possible in these variants:
- Life insurance with coverage of death
- Life insurance with coverage of death and disability
- mixed life insurance with capital formation
The mixed life insurance thus provides protection for the surviving dependents and for the event of disability. At the same time, capital formation can ensure that a fixed amount is paid at the end of the agreed term to secure income in old age. In addition, there are attractive tax advantages if life insurance is managed in pillar 3a. The annual premiums to be paid here can be deducted from taxable income up to the statutory maximum.
Conclusion: That is why private provision is indispensable
The declining occupational and legal precautionary measures have made it indispensable to make private provision for old age. If the usual standard of living is to be maintained in old age and it is also important to protect the survivors in the event of death, a mixed life insurance policy is a very good choice.
It insures the policyholder in the event of disability as well as in the event of death and can still be taken out as a capital-building insurance policy. The capital is available at the end of the agreed term. Without private provision, severe losses have to be accepted later, which can lead to poverty in old age and debt.
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