What impact does the choice of tax class have on my pension?
October 23, 2023 | 40,00 EUR | answered by Babette Schneider
Dear tax consultant,
My name is Bernd Mühlberg and I am currently in tax class III. I am 45 years old and I am wondering what impact the choice of tax class could have on my pension. As a sole earner husband with a gross income of 60,000 euros per year, I have chosen tax class III in order to benefit from tax advantages. However, I am concerned about how this decision could affect my pension in the long term.
I am wondering if choosing tax class III will affect my pension entitlements in the future. Are there possible disadvantages that could result from lower contributions to the pension insurance? Should I consider switching to a different tax class to improve my pension prospects? Or are there alternative ways to ensure that I am adequately secured in old age?
I would like to learn more about how the choice of tax class affects my pension entitlements and what steps I should potentially take to secure my financial future. I would greatly appreciate your expert advice on this matter.
Thank you in advance.
Best regards,
Bernd Mühlberg
Dear Mr. Mühlberg,
Thank you for your inquiry regarding tax class and its effects on your pension entitlements. As a tax advisor with extensive experience in this area, I can provide you with some information.
First and foremost, it is important to know that the choice of tax class does not directly impact your pension entitlements. The tax class is primarily relevant for the calculation of your income tax, as it determines your monthly tax deduction. However, indirectly, the choice of tax class can also have effects on your pension entitlements.
In tax class III, which you have currently chosen, as the sole earner you benefit from a lower tax deduction as your spouse is in tax class V. This means you have more net income available. However, you also pay less contributions into the statutory pension insurance, as these contributions partly depend on the gross income. This could have a long-term impact on the amount of your pension, as pension entitlements are based on the contributions made.
It is therefore advisable to think early about your pension security and possibly take measures to improve your pension prospects. One option would be to switch to a different tax class, which may offer you fewer tax advantages but higher pension contributions. Alternatively, you could also make voluntary contributions to the pension insurance to increase your pension entitlements.
It is advisable to seek individual advice to find the best solution for your personal situation. I recommend you to make an appointment for my online consultation hours so that we can analyze your pension entitlements together and discuss possible steps to secure your financial future.
I hope this information is helpful to you and I am at your disposal for any further questions.
Best regards,
Babette Schneider
