In Germany, self-employed artists and publicists are subject to social security contributions under the Artists' Social Security Act (KSVG). Through membership in the artists' social insurance fund (KSK), artists pay contributions to the statutory pension insurance.
The retirement provisions for artists consist of various combinations of
- statutory pension fund
- state-subsidised supplementary pension provision ("Riester pension" or "Rürup pension") and
- private pension provision in various forms.
The amount of the probable statutory pension can be determined from the annual decisions of the statutory pension insurance institutions. You can also enquire directly at the responsible office (application for account clarification at the Deutsche Rentenversicherung Bund).
The elders of the Deutsche Rentenversicherung Bund are responsible for questions about the reasons for, and amount of your current pension assessment, http://www.deutsche-rentenversicherung-bund.de
Compulsory members of the statutory pension insurance scheme can get state subsidies within the framework of private provision. These include self-employed persons, such as artists, teachers, child-raisers during child-raising periods, and people in marginal employment (mini-jobs) under certain circumstances.
Artists who are compulsorily insured through the artists' social insurance fund (KSK) should not miss out on this state support under any circumstances. In order to decide whether additional, private old-age provision makes sense, your current status and your own ideas about your desired level of financial security in old age should be examined carefully.
The following list of criteria, which you should answer for yourself, may serve as an aid:
1. Questionnaire for a personal provision analysis.
- What requirements, what burdens are you likely to have at retirement age?
- Are all risks (nursing care, occupational disability, ...) adequately covered?
- What do you actually need per month?
- Will you still be paying rent later or do you own a debt-free property?
- Are life insurance policies due? Do you have any other income?
- What running costs do you have to pay for heating, electricity, mobility, and
- What will you have to spend on food or care services?
Add together anything you can think of. However, keep in mind that everything may be more expensive later on than today. You should allow for an inflation rate of about 2% percent at least! You should plan a little more generously.
2. How much money do I have to spend now to reach my retirement goal?
You know what you will need each month in later years. Now calculate backwards. You may find that the pension target seems unattainable. During the consultation we will look for solutions together.
3. My financial situation
- How much money can I spend on a pension plan?
- Have I insured against risks such as occupational disability, long-term care or death?
- Do I have a reserve for emergencies?
4. Results and financial status
You should supplement your own statutory pension with an additional Riester pension or with Riester-subsidised products if the financial possibility exists. The state subsidy in the form of supplements can make this form of provision worthwhile.
The "Riester pension" offers a considerable state incentive in the form of allowances and tax savings in the savings phase, which can generate a high total return despite the threat of the pension being taxed when it is drawn. It also offers a degree of transparency and flexibility that other financial products lack. Cost transparency and the possibility of switching are significant, as far-reaching consumer rights. The pension is also seizure-proof against the employment agency. If unemployment benefit II or social assistance is received, the Employment Agency is not able to reclaim the pension.
The "Riester Pension" is offered in five different forms such as bank savings plan, fund savings plan, building society savings contract, and classic or unit-linked pension insurance.