Through capital-building benefits, employees should be able to amass money with the support of their employers – and in some cases also from the state. But how exactly does it work? Of the stern explains it.
Small livestock also makes crap: In the case of capital formation benefits, or VL for short, money is given by the employer and the state also supports low-income earners. Nevertheless, many employees, civil servants and the like do not take advantage of the offer. Of the stern explains the VL in step-by-step instructions.
Asset-forming benefits – what is it?
The VL is intended to enable employees to save a small fortune over several years. The boss pays between 6.95 euros and 40 euros per month. Exactly how much the company donates depends on collective bargaining agreements or works agreements. Allowance from the boss possible. If the company does not pay the maximum amount, it is advisable to top up the amount from your own resources. But: There is no obligation to add more money yourself. But it can be worth it. And some VL products have minimum savings. Payments are made over a period of six years, after which the investment is dormant for twelve months. So the term of VL is seven years.
Who gets VL?
by the boss. If there is no collective agreement, there is often a passage in the employment contract. Because many employers also pay their share of the VL on a voluntary basis. However, there is no legal entitlement. If you do not have a collective bargaining agreement and there is nothing in your employment contract, ask. .
The VL is basically for employees, civil servants, judges, soldiers and trainees. Those who work part-time only receive a proportion of the benefits from the boss. New employees are usually only given the VL after the trial period has expired. Pensioners, freelancers or the self-employed do not receive a VL.
How do I get there?
1. Check if your company offers VL. It is best to ask the HR department. 2. Are you a low wage earner? Then it is essential to check the legal limits – there may be subsidies from the state. 3. Off to the bank: there you can get advice and choose the right product. Often, however, banks only sell their own products (for example, Deka funds from the savings banks). If you want to have a special fund, deposits at online banks can be the right choice, because they are often cheaper. , which – depending on the willingness to take risks when investing – calculates the possible return. 4. The bank has a form that you can send to your employer. Because the company does not pay the VL to you, but directly to the bank.
Are there grants from the state?
Yes, low-wage earners can also save and receive a subsidy from the state. If the taxable amount (for single persons) and for spouses or partners is less than 35,800 euros, you are entitled to the employee savings allowance – if the capital-forming benefits are used for a residential purpose, e.g. building society savings contracts.
For other forms of savings (in the case of funds, for example), the income limit is 20,000 euros for single persons and 40,000 euros for spouses.
This is 20 percent (to a maximum of EUR 400 deposits per year) for savings contracts and equity funds – that is up to EUR 480 over the entire term. Anyone who wants to pay off a building loan or who wants to amass money through a home loan and savings contract will get nine percent of a maximum of 470 euros per year. Funding can be provided for bank savings plans, fund savings plans, contributions to life insurance, loan repayment of a property you use yourself or a building society loan agreement.
Building savings, bank savings plan or funds: which is better?
Every investment has advantages and disadvantages. Before signing the VL contract, you should ask yourself how much risk you want to take. Equity funds offer a higher return for the saver. A home loan and savings contract, on the other hand, is less risky, but the return is very narrow. A bank savings plan is also security-oriented, but there is no state subsidy – and the base rate is variable for most offers. If you want to pay off an old building loan, you can do that with the VL.
What is the end result?
Anyone who saves 40 euros every month has a total of 2,880 euros in savings after six years of payments. Now the different investment products provide income:
Anyone who opts for a bank savings plan has to live with meager interest rates, but is offered a lot of security. Many banks have worsened their interest rates for customers, reports the “. Interest rates are often only around the 1 percent mark.
A fund savings plan is more profitable: According to the BVI fund association, an average return of 7.4 percent. The association calculated that savers with VL funds accumulate a balance of around 3,900 euros after seven years (with an annual return of seven percent). The one who calculates the cost of the investment (equity funds are not free!). The fund analysis portal Fondsweb offers that have existed for at least seven years. The Stiftung Warentest also took a closer look at VL. Here you can read which type of investment suits you.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
