What are the tax benefits of retirement provision?
April 5, 2024 | 40,00 EUR | answered by Christine Witzelmann
Dear tax advisor,
my name is Ingo Schaaf and I am looking for information on tax benefits in the area of retirement planning. I am currently 40 years old and am thinking about my financial security in old age. I have already taken out a private pension insurance, but I am unsure if I am fully utilizing all tax advantages to optimize my retirement planning.
Therefore, my main question is: What tax benefits are available for retirement planning and how can I best utilize them for myself? I am aware that the tax treatment of retirement products such as Riester pension, Rürup pension, or occupational pension can be complex and I want to ensure that I am aware of all possibilities to minimize my tax burden and effectively plan for my retirement.
In addition to my private pension insurance, I also have a securities account and a property as part of my retirement planning. I am also interested in knowing what tax aspects I need to consider when renting out my property and if there are any tax benefits that I can take advantage of.
I look forward to your expertise and valuable tips on how I can optimize my retirement planning from a tax perspective to best prepare for my future.
Thank you in advance.
Sincerely,
Ingo Schaaf
Dear Mr. Schaaf,
Thank you for your inquiry regarding tax benefits in the area of retirement planning. It is very important to think early about financial security in old age and to take advantage of all tax possibilities to optimize your retirement planning.
There are various tax benefits that you can utilize in retirement planning. One of the most well-known forms of retirement planning is the Riester pension. With the Riester pension, you receive state allowances and tax benefits. You can deduct contributions to the Riester pension up to a certain maximum amount for tax purposes. Additionally, the payouts in retirement age are only partially taxable. Therefore, it is worthwhile to consider the Riester pension as part of your retirement planning.
Another option is the Rürup pension, also known as the basic pension. Here, you can deduct your contributions for tax purposes and benefit from a lifelong pension in retirement age. The tax support for the Rürup pension is especially interesting for self-employed individuals and high earners.
Company pension schemes also offer tax advantages. Here, you can deduct contributions for tax purposes and benefit from an additional retirement plan supported by your employer.
In addition to these specific retirement products, there are also tax aspects to consider when renting out your property. For example, if you rent out your property, you can deduct expenses such as depreciation, renovation costs, and interest for tax purposes. When selling the property, you may be able to benefit from tax exemption under certain conditions according to §23 of the Income Tax Act.
It is important to seek individual advice in order to make the best use of all tax benefits available to you. A tax advisor can help you optimize your retirement planning and minimize your tax burden. It is best to make an appointment to discuss your personal situation and receive customized tips.
I hope this information was helpful to you. If you have any further questions, please do not hesitate to contact me.
Best regards,
Christine Witzelmann
Tax Advisor
