Finances between 45 and 60+: What you can do for your finances between 45 and 60

Don't rush into anything, but don't wait forever either – what applies to the attitude to life after 45 also applies to a good financial strategy at this age. Especially those planning to take the plunge into something completely new, whether personal or professional, should tackle two projects now:

Between 45 and 60, most people have reached the peak of their careers – but probably still far from the peak of their salary. Women, in particular, negotiate their salaries far too rarely, says salary coach Ljubow Strobel: "They often think that managers will see how well they're contributing and should offer them more pay." But supervisors are rarely that accommodating. "These people are expected to think economically. And perhaps the impression simply arises: If you don't ask, you're already satisfied."

Therefore, employees—and self-employed individuals—should discuss money at least every two years. This way, their salary can keep pace with their performance, experience, and inflation.

Six tips from Lyubov Strobel to make this happen:

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► It's better to speak of a "salary adjustment" rather than a "salary increase." This suggests that the current pay doesn't match the performance.

► Before the interview, be sure to check your own market value, for example through online portals such as Kununu or conversations with team members.

► During the interview, emphasize your own added value to the company. Your supervisor doesn't care that your life may have become more expensive. What matters are successful projects or responsibility for colleagues or customers.

► Countering killer arguments. If your boss says, "I'd give you more money, but I don't have a budget," a response could be: "I'm glad you see that my salary and, accordingly, the budget should be adjusted. How can I help you implement this?"

► Endure silence. Strobel advises: "If you feel like you're at a dead end, just say: 'Phew, that's not satisfactory for me right now.'" This will make it clear that you won't let yourself be fobbed off. Afterward, it's important to remain calm, even if the other party doesn't respond immediately. This demonstrates how serious you are about the negotiation.

► Is your counterpart remaining tough? Then try to negotiate benefits. After all, not only salary but also the number of vacation days or funding for further training can be negotiated. However, you shouldn't resort to such alternatives too quickly. "The base salary always comes first, as pension contributions are ultimately deducted from that," says Strobel.

As a rule of thumb, anyone who wants to maintain their standard of living after retirement needs around 80 percent of their last net income. However, this often cannot be covered by various types of pension entitlements alone.

But even after your 50th birthday, there's still plenty of time to fill this gap. First, determine how much money you're likely to have available in retirement—for example, using the Digital Pension Overview provided by the German Pension Insurance (DRV). On the rentenuebersicht.de website, you need to authenticate yourself with your ID card (with activated online functionality) and your tax ID, and you can then request information about your statutory, occupational, and private entitlements; the DRV provides an overview for this purpose. Above all, check the expected amount of your statutory pension, as this usually accounts for the largest portion of your entitlements. Several scenarios are usually presented, depending on the expected return. It's best to assume a relatively moderate development with an annual increase of two to four percent.

Have you also made additional provisions for your retirement through investments in the capital market? Then check how much you'll likely have available upon retirement. Due to compound interest, this isn't as easy to calculate as pension entitlements. However, tools like zinsen-berechnen.de at least provide a rough estimate. Important: Stay calm if your portfolio occasionally shows red numbers. Price fluctuations are normal; crises will always end. Anyone currently in their 50s has at least ten years until retirement. This is usually enough time for prices to recover from slumps.

Now add up your pension entitlements and the assets you've probably saved. Is the amount you'd have available each month less than 80 percent of your current net income? Then start your financial catch-up now! The easiest way to generate wealth is still through ETFs, i.e., index funds that diversify your investments across different companies. However, since it's unclear how the economy will develop in the near future—keyword: US tariff policy—you shouldn't invest solely in an ETF that tracks the MSCI World or its many offshoots. These and similar indices consist primarily of US stocks. And such a high concentration also carries a significant risk. If the US is in crisis, the recession of a single country can plunge your portfolio into the red. So, it's better to diversify your investments and put some into a fund with a European focus, for example. European bonds, where you lend money to European companies or countries and receive interest in return, can also be a useful addition to your portfolio.

In retirement, you can then gradually sell your investments. This is called dissaving. The advantage: As long as you still have money invested, you'll continue to earn a return. If you plan to use up all your invested or saved capital before the end of your life, you should be cautious about your calculations: According to the Federal Statistical Office, women live an average of another 23 years after their 60th birthday, but many live much longer. Of course, you have to have enough money for that. After all, you've earned it.

Brigitte