Construction financing - How will it change in the future?

But if you love your job and primarily do intellectual work, you can easily work until 70 or so.

Yes, many think that. However, as a HR officer, I experience the opposite far too often. Quite a few of the intellectually working are already completely worn out by their mid/late fifties and fall into disability or incapacity pensions. Usually, a physical ailment precedes this, and over time the psyche also gets affected. However, the professional demands constantly increase and so does the workload to be managed. This combination is by far not something everyone can endure until regular retirement, let alone until 70. If you are lucky, there might currently be a personnel downsizing program running and the severance pay fund is well filled. Otherwise, it can get very uncomfortable with a mortgage to pay off.

Yes, many think that way. However, as a personnel officer, I too often experience the opposite. Quite a few of those doing mental work are already completely worn out by their mid to late fifties and fall into reduced earning capacity or disability pensions. Usually, a physical ailment precedes this, and over time the psyche also becomes involved. The professional demands are constantly increasing, as is the workload to be managed. This combination is far from bearable for everyone until the regular retirement age, and certainly not until 70. If you're lucky, there is currently a personnel slimming program running and the severance fund is well filled. Otherwise, things can get very uncomfortable with a mortgage to pay off.

No question, if illness is involved, that’s not possible. As I said, I am not saying it always works and it is probably not even the majority. But it is also not the case that you have to stop working at 67 in every case.

Furthermore, I assume that with psychological suffering, an unenjoyable job or a destructive work environment often plays a major role. And it has also been demonstrated in studies that many physical ailments are linked to a less than fit psyche. But that is another topic.

Working beyond the standard retirement age does not necessarily mean doing so in the same company, to the same extent, and in the same role. For example, 10 hours a week on a freelance basis, or simply doing something completely different. Especially if you have done almost the same thing in the same place for 40 years, retirement is definitely an opportunity to try something new.

Especially when you have been doing basically the same thing in one and the same store for 40 years, retirement is definitely the chance to try something different.

Right. This just reminds me of a good friend who is now retired and trying to establish himself as a narrator (audiobooks). He also has a pleasant voice, but I don't know if he has been successful with it yet.

No question, if illness is involved, that's not possible. As I said, I'm not saying that it always works and it's probably not even the majority. But it's also not the case that you have to stop working at 67 in every case.

Absolutely. But the number of people leaving prematurely is at such a high level that you have to be very optimistic and risk-taking to choose a repayment plan that extends several years into the regular retirement age. I think it's incredible that exactly that apparently happens more and more often, just because people refuse to downsize and some banks even encourage their customers to do so.

Absolutely. But the number of early terminations is at such a high level that you really have to be very optimistic and risk-taking to choose a repayment plan that extends several years into retirement. I find it amazing that this apparently happens more and more often, just because people refuse to build on a smaller scale and some banks even encourage their customers to do so.

I believe part of the truth is also that there are indeed people who choose a long term at the time of financing to keep the initial installments low, because at that time they cannot bear higher burdens. But over time, with salary increases, possibly half or even a full extra salary per month (part-time to full-time) or children moving out, it is expected that higher installments can be paid later on.

A friend’s mother once said:
We went into debt for this house and our willingness to help, but we wanted a good environment for our 4 children. We will help each of them through their studies, and only when all the children have finished their studies can we manage economically and get out of our debts. We consciously take this path and can live well with it.