Pension in Germany - a Comparison

K

Kevin5

Registered User
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Hi

I am 32 and want to start a pension. I have received some info and befor I buy the product would like to hear your advice on this product. It is being offered from standard life. I will pay in 200€ a month with a yield of 6 %. Hence I want this to run until I am 60...therefore 28 years. That would cost approx 67k with a lumpsum payout of 140k when I am 60 or 696 € per month for the rest of my life.

Is this comparable to some products in Ireland ?
Is it worth it....or do the sums represent bad value for money ?

any advice would be much appreciated.

Cheers
Kevin
 
Hi Kevin,

I am no expert, am in the same situation as you setting up a pension for the first time. I had a meeting with bank permanent TSB and they are offering a minimum 7% guranteed return with Irish Life.
 
Hi Kevin:

  • What is the allocation rate?
  • What is the bid/offer spread?
  • Is there an annual fund management charge, if so what is it?
  • What happens if you need to access the fund before you are 60?
  • Is the 6% return guaranteed or just an estimate?
  • Would the lump-sum payout of €140k be taxable, is any part of it tax-free?
 
vue11 said:
I had a meeting with bank permanent TSB and they are offering a minimum 7% guranteed return with Irish Life.
Click to expand...

Are you sure it is guaranteed? I could be wrong, but in my experience it would be quite unusual for Irish Life to offer a pension product with an investment guarantee. Are you sure that it wasn't just a sample rate for illustration purposes?
 
Sherpa/Kevin5,
The growth or yield figures that the finanical institutions have provided are not guaranteed(Who could guarantee 6% over 28 years!!).They are simply to allow you to compare to other products.
In essence they allow you to see how much of the fund is been eaten up by charges.
 
Savvy said:
Sherpa/Kevin5,
The growth or yield figures that the finanical institutions have provided are not guaranteed(Who could guarantee 6% over 28 years!!).They are simply to allow you to compare to other products.
In essence they allow you to see how much of the fund is been eaten up by charges.
Click to expand...

That's what I thought. What makes me worry is when I see people like the earlier poster believing that the investment return is guaranteed. Still I'm sure it's an honest mistake on his part rather than a case of the salesman being economical with the truth :rolleyes:
 
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