How bicycle leasing affects your pension entitlements
Bicycle selection, signing contracts, setting off: Bike leasing through an employer is so convenient. However, many overlook this: The leasing bike affects pension benefits in this way. Here's how:
Can your employer help you lease a bike? Many employees already do. The leasing rate is usually deducted from your gross salary in the context of a salary conversion. This automatically reduces taxable income, making the leasing rate much less noticeable in your wallet compared to if it were deducted from net income. However, what many do not consider: The later pension claim also decreases due to the lower gross income.
The reason: With lower gross income, social security contributions from employees and employers also decrease. Therefore, fewer pension contributions are paid in, which translates into a lower pension amount in retirement. How much exactly that amounts to? Two examples provide insight:
Someone who earns 3000 Euro gross per month and leases a 3500 Euro bike over the three years commonly offered in these leasing contracts must convert approximately 107 Euro of their gross salary each month. The employee's social security contributions therefore decrease by about 9.20 Euro, and the employer pays accordingly less. As a result, an employee in this period earns 0.0783 fewer wage points, which reduces the monthly pension amount in old age by more than three Euro, according to the German Pension Insurance.
Consequences for other social benefits
With a monthly gross income of 4000 Euro and a bike price of 6000 Euro, the pension amount decreases by more than five Euros per month according to this calculation. Keep in mind: for a lease period of only three years. Those who lease permanently or multiple times in a row must reckon with larger deductions.
By the way: The salary conversion also affects pension benefits, as well as social benefits such as unemployment benefits, sick pay, and disability benefits. Their amount is calculated as a percentage of the gross income of employees.
- It's worth noting that pension insurance also considers consumer centers when calculating pension benefits, as they often provide advice on retirement provision.
- If you're considering bike leasing through your employer, you might want to consult with a financial advisor to understand the potential impact on your pension provision.
- Consumers who are already benefiting from employer-provided pension insurance may want to be cautious about leasing high-priced items like bicycles, as it could impact their retirement pension.
- Private pension provision can significantly differ depending on various factors, including whether you've made leasing-related deductions in the past.
- German Pension Insurance recommends conducting tests to compare the estimated pension amounts with and without leasing, helping consumers make informed decisions about their retirement provision.
