Voluntary Private Pension Scheme

Voluntary insurance

• All persons can participate voluntarily in the scheme without restriction (individual savings).

General finances

• Fully funded personal pension plans based on personal contribution payments and capital revenues.

Contribution payments

• Persons provide contribution payments and decide upon its amount individually on a contractual basis.

State support & incentivising strategies

• No specifications in law regarding state support and incentivising strategies.

• Depends on the chosen solutions (e.g. savings account, bonds, stock, investment funds, insurance policies), bank- and insurance-oriented.

• Depends on the chosen solutions (e.g. savings account, bonds, stock, investment funds, insurance policies), freely determined on a contractual basis.

Pension payments

• Depends on the chosen solutions (e.g. savings account, bonds, stock, investment funds, insurance policies).

Taxation and social security contributions on pension payments

• Payments are fully subject to income tax according to general tax rules. Lump sums are taxed at a reduced rate separate from the remaining income; the same applies to premature lump sum payments.
• Payments are not subject to social security contributions.