Monaco

[PsyGuy]

@Thames Pirate

I didnt write that Germany had an alternative minimum pension I wrote that some regions do and some regions have very low vesting times, Germany has a very low vesting time of 5 years.
Your value is also off, its more like EU€475/mth since ITs/DTs get to count three years of training time as service. Which isnt a lot, but its how much more than the zero Asia will give you?

[teacher tan]

BY TP's calculation, 25 years of service should fetch about 1500- Euros per month. Is this net income in hand post-taxes and healthcare deductions? Thanks.

[PsyGuy]

@teacher tan

This is only applicable to Germany, my calculation is just under EU€2000/mth, for the basic pension scheme. Pension income is taxed but if youre under EU€2000/mth you wont pay any taxes on it. You wont pay for healthcare deductions/premiums (except for long term nursing care).

[Thames Pirate]

PsyGuy wrote:
>
> I didnt write that Germany had an alternative minimum pension I wrote that some regions
> do and some regions have very low vesting times, Germany has a very low vesting
> time of 5 years.
> Your value is also off, its more like EU€475/mth since ITs/DTs get to count three
> years of training time as service. Which isnt a lot, but its how much more than
> the zero Asia will give you?

Um, no. You don't get to count that time (unless you were training in Germany or are German). And it isn't a linear equation. There are several factors that determine your payout.

teacher tan wrote:
> BY TP's calculation, 25 years of service should fetch about 1500- Euros per month.
> Is this net income in hand post-taxes and healthcare deductions? Thanks.

No because it isn't linear. You can't just multiply by five. It depends on your age at retirement, etc. Your taxes are determined by your pension

PsyGuy wrote:
> @teacher tan
>
> This is only applicable to Germany, my calculation is just under EU€2000/mth, for
> the basic pension scheme. Pension income is taxed but if youre under EU€2000/mth
> you wont pay any taxes on it. You wont pay for healthcare deductions/premiums (except
> for long term nursing care).

Not quite that simple, but the basic idea is correct.

[teacher tan]

So, TP, if one retires at 65 with a salary of 95K euros a year, roughly speaking, what will be the your pension estimate? Assuming the teacher paid into it for 25 years.

[PsyGuy]

@Thames Pirate

Yes you do get to count that time. I agree its not linear and it does get complicated.

@teacher tan

I used a base of EU€75000/mth as a rough average estimate, figuring that over 25 years you would have to have had merit increases and cost of living increases and that the average ceiling over that time has changed as well. I also assumed you would hit 65 in 2020 and make your pension claim. I also included the three year service credit for professional training. Germany typically plans that you will receive back about 68% of your contributions (some pensioners beat that and some dont). You contributed half of the payment, your employer contributed half, their financial ana1ysis is 2.2% ROI (but you earned 2.2% on free coin that your employer provided for an aggregate ROI of 4.4%) which is a little better than the average stock return and is guaranteed.
Again, this is just for Germany, and its just the basic pension scheme, it doesnt include the occupational or organizational schemes. There are regions that are worse (UK), and those that are better (Northern Europe) and those that are more complicated (Switzerland).

[Thames Pirate]

You can find approximate calculators online, you know. There are several factors in play, and while going through a broad hypothetical is possible, there are simply too many things I don't know about your situation. Even my own is still hypothetical at this point.

And no, your teacher prep time does not count. Unless you were filing taxes in Germany during that time.

[PsyGuy]

@Thames Pirate

Yes it does count, you cant have three credited to your pension just for asking, but once you have made your 60 months of contributions and and are vested you can than apply to have your training years applied to your credits.

[Thames Pirate]

Whatever. There's no point in arguing with you because you, of course, will say whatever you want and insist you are right without evidence.

Folks, if you move to Germany, feel free to try. In the meantime, the point remains that the pension requirements and payouts vary and doing your research can save or get you a fair bit. It's up to you to figure it out or decide whom/what to believe.

[PsyGuy]

@Thames Pirate

Your position is exactly the same 'Im Thames Pirate and I (and my one friend) say Im right because I say so'.

[Thames Pirate]

Nope, not "one friend."

You should try reading German. It helps when looking at this issue. ;)

[PsyGuy]

@Thames Pirate

Just you then, and no German doesnt help.

[Thames Pirate]

PsyGuy wrote:
> @Thames Pirate
>
> Just you then, and no German doesnt help.

Hahaha! Reading/speaking German does not help one read up on the German pension system?

[PsyGuy]

Plenty of native German speakers dont understand the German pension scheme.

[Thames Pirate]

Whatever. Sure. You're the expert. You do realise you sound ridiculous when you claim that knowing German isn't helpful in READING UP ON the German pension scheme? But sure, have the last word. I am sure people will believe you.