What tax-saving opportunities are there for retirement savings through capital investments?
July 31, 2022 | 50,00 EUR | answered by Robert Kockel
Dear tax consultant,
my name is Ben Stolzheim and I am currently focusing intensively on my retirement provision through capital investments. I am 35 years old and would like to start preparing for my retirement early to be financially secure in old age. I have already made some capital investments, but I am unsure if I am proceeding optimally from a tax perspective. I would like to know what tax-saving opportunities exist for retirement provision through capital investments and how I can best utilize them.
Currently, I have various securities, investment funds, and also a private pension insurance in my portfolio. I have heard that there are tax advantages when using certain investment forms for retirement provision. Therefore, I would like to know if I can optimize my existing capital investments from a tax perspective to achieve higher returns for my retirement provision.
Furthermore, I am concerned that I may overlook tax advantages in retirement provision through capital investments and therefore miss out on saving money. I want to ensure that I fully exploit all possibilities to minimize my tax burden and efficiently structure my retirement provision.
Could you please explain in detail which tax aspects I should consider in my retirement provision through capital investments and what specific tax-saving opportunities exist? I would also like to find out if there are special investment forms or strategies that are particularly tax-efficient and how I can best utilize them for my retirement provision.
Thank you in advance for your support and advice.
Sincerely,
Ben Stolzheim
Dear Mr. Stolzheim,
Thank you for your inquiry regarding the tax optimization of your retirement provision through capital investments. It is commendable that you are already actively considering your financial future at a young age and wish to plan ahead. I am happy to provide you with an overview of the tax aspects to consider for your retirement provision through capital investments, as well as potential tax saving opportunities.
First and foremost, it is important to know that capital gains generated from securities, investment funds, or other capital investments are generally subject to withholding tax. This currently amounts to 25% plus solidarity surcharge and, if applicable, church tax. On the other hand, tax on future pension payments is due for private pension insurance. However, there is the option to take advantage of the so-called deferred taxation, where only a portion of the pension payments is taxable.
One way to save on taxes for retirement provision through capital investments is to use tax-optimized investment forms such as Riester or Rürup pensions. These products offer tax advantages as they are state-subsidized and provide certain tax benefits such as allowances or special expense deductions. Particularly for self-employed individuals or high earners, the Rürup pension can be an interesting option due to the high tax deduction possibilities.
Furthermore, you can also benefit from tax-optimized investment funds specifically designed for retirement provision. These funds invest in tax-optimized asset classes and aim to minimize tax burden. Through smart fund selection and regular rebalancing, you can increase your returns and simultaneously reduce your tax burden.
Additionally, you should take advantage of tax-optimized loss offsetting to offset losses from capital investments with profits and thus reduce your tax burden. Careful planning and monitoring of your capital investments are crucial in order to fully utilize tax advantages.
Overall, it is important to consider your retirement provision through capital investments holistically and include tax aspects in your planning. Individual tax advice can help you minimize your tax burden and efficiently structure your retirement provision. I am available for further questions and personal consultations.
Best regards,
Robert Kockel, Tax Advisor
