Payments to private pension savings are deducted from wages before tax. Paid-out wages, therefore, decrease a little less than the amount that is deposited into the savings account, as the tax is paid when the savings are withdrawn. Capital gains tax is not paid on returns.
No one should miss out on the employer’s matching contribution, given that that the 2% contribution represents a clear pay raise. The employer handles all administration after the agreement on private pension savings has been concluded.
On retiring, disposable income inevitably decreases, making it good to have the private pension savings at hand.
Private pension savings are the personal property of the individual and are fully inheritable by legal heirs and divided according to rules stated in the Inheritance Act.
As of the age of 60, it is possible to withdraw the entire amount at once, receive regular payments or receive payments as needed.
Private pension savings do not have an impact on old age pensions and income supplements from social security and do not reduce child benefits, interest tax rebates or unemployment benefits.
Private pension savings are additional pension savings and personal pension of the person concerned.
This is one of the most affordable savings available. An employee who deposits 2–4% of their monthly wage receives a 2% counter-contribution from the employer, which in practice is a pure wage supplement. As with other pension savings, no tax is paid on it until withdrawal.
Private pension savings can be used from the age of 60, provided that at least two years have passed since the first deposit. You can then withdraw everything at once, receive regular payments or receive single payments when necessary.
Private pension savings do not affect retirement pensions and income supplements from social security.
Private pension savings are the personal property of the individual and are fully inheritable by legal heirs and divided according to rules stated in the Inheritance Act. If a fund member does not leave a spouse or children, the private pension goes to the estate.
The benefits of private pension savings are many and irrefutable. By placing at least 2% of wages in private property, you receive a 2% matching contribution from the employer, which is actually equivalent to a 2% wage increase.
From the age of 60, you can withdraw the entire credit at once, receive regular payments or receive single payments when necessary.