- Different income tax calculators are availabel.
- Couples living together have the option of choosing different tax class combinations.
- A pension calculator will help you determine the size of your so-called pension gap.
- Income, age, education and relationship status (single, married or divorced) are used to calculate your future pension entitlement.
- Once you have carried out the calculation with the Horizont65 app, an independent advisor will contact you, if you so wish.
Many people are concerned with the question of how much money is actually left over from a salary increase. In order to clarify this question, you need a suitable tax calculator which you can find on special Internet pages. Different income tax calculators are available depending on the type of income: With the german income tax calculator, the gross-net calculation for salaried employees succeeds, an income tax calculator is needed when other income, such as from rentals, is included in addition to the salary.
Married income tax calculator
The married income tax calculator gives you a quick overview of how the joint net income of you and your partner will develop from the day of your wedding. This is because couples living together have the option of choosing different tax class combinations. After marriage, both spouses automatically receive tax class 4 from the authorities, but this only makes sense if both receive roughly the same salary. Alternatively, couples can choose the tax class combinations 3 /5 or 4/4 with a factor.
You can always choose the tax class combination that results in the highest joint net salary. The tax authorities allow you to change the tax class several times a year by submitting a written application.
The combination 4/4 is ideal for you if both partners earn slightly different amounts. This way, the tax burden can be distributed evenly and the probability of additional tax payments remains low.
The combination 3/5 is suitable for couples with a significant difference in salary. The higher-earning partner should choose tax class 3, the lower-earning partner tax class 5. With this combination you have the lowest amount of deductions and the maximum monthly net.
In addition to the legitimate question of net income, which ensures you a good living during your working life, you should also consider your retirement income when you retire. It is important to think about this as early as possible. And this is clear: even with a good income, the statutory pension is usually not enough for a relaxed retirement. That is why it is important to make additional private or company pension provision.
How do I find out how much I need to set aside for retirement in order to make a good living in old age?
In addition to the german wage tax calculator and salary income tax calculator, there are other calculators for various analyses. A pension calculator will help you answer this question and determine the size of your so-called pension gap. You can find a good pension calculator Altersvorsorge | Horizon65 | Horizon65 here. With this app, you can determine your “pension gap” in a few steps and get more planning security for old age.
Why is it so important to determine your pension gap?
Anyone who relies solely on the statutory pension can get a nasty surprise in old age. The reason: Germany’s pension funds are becoming increasingly strained due to the aging of society. Fewer and fewer people of working age have to finance more and more pensioners and retirees. The state pension system is becoming increasingly out of balance, and the average pension has been declining for many years.
As a result, the state pension alone is already no longer sufficient for a financially carefree life, and it is increasingly becoming a kind of basic pension. Although this basic pension is secure, it is too low in most cases. Additional private provision is therefore indispensable. You must enter the following information in the pension calculator to get a realistic result:
Information on the calculation of the statutory pension
On the one hand, your income, age, education and relationship status (single, married or divorced) are used to calculate your future pension entitlement. It is also important to specify whether you work part-time or full-time, as an employee or as a self-employed person. Self-employed people are sometimes not obliged to pay into the statutory pension fund, so private provision is indispensable for them. Also, the educational qualification (school, vocational training, studies) must be indicated, since a pension entitlement is also partly acquired during these periods.
Information on real estate ownership
Real estate also counts as a pension provision and represents a high value. It is irrelevant whether the property is owner-occupied or rented. Based on the postal code and street of your property as well as the type of building (detached house, semi-detached house, apartment), the equipment and the ownership share, the calculator evaluates the value of your property at retirement.
In addition, you must select whether you want to live in the property yourself in old age, sell it or rent it out. Any rental income will be added to your retirement income. If you want to sell the property in old age, the proceeds of the sale, broken down to the month, will also be added to your retirement income.
Disclosure of any existing company pension
If you are also entitled to a company pension from current or previous employment, you can also enter this into the calculator. The pension amount of the company pension can also be extrapolated to the planned retirement date based on the current status notification.
Data on available cash
Last but not least, you should declare any existing cash or money invested elsewhere. These assets are also included in the pension calculation.
What will I see at the end of the calculation once I have entered all the data?
As soon as you have entered all the data, the pension calculator calculates the respective assets saved for the planned retirement or the respective amount of the company pension, private pension and also the statutory pension. The difference between your current net salary and the sum of your calculated total pension provision is then your pension gap. For most people such a pension gap results, unless you are very wealthy – then you do not have to worry about your livelihood in old age.
What can I do if I find that I have a pension gap?
Once you have carried out the calculation with the Horizont65 app, an independent advisor will contact you as soon as possible with suggestions on how you can close this pension gap, if you so wish. All suggestions will be tailored to your situation (age, income level, other assets, full-time/part-time, etc.). You could, for example, take out state-subsidized and tax-reducing pension products such as a Riester pension or Rürup pension, but there are a whole range of other options. Horizont65’s friendly pension experts will be happy to explain all the options to you.