A person can receive payments from the voluntary funded pension whenever they wish.
After the person has become 55 years old, income tax incentives apply to the payments. Tax incentives are applicable, irrespective of their age, to the persons who have become fully and permanently incapable of work.
The amount of payments depends on the size of the accumulated reserves and the duration of the selected pension period. The range of available options is wide, from single payment to lifetime pension.
- In order to make payments based on the amount of money collected under pension insurance with guaranteed interest rate or investment risk, the policyholder must conclude a contract with the insurance company. In case of lifetime pension payments based on insurance contract, the person can also choose a guarantee period to assure that the pension payments are made to the inheritors after the person’s death during the chosen period.
- The payments from a voluntary pension fund are made upon redemption of the fund units. This means that in order to get the money the fund units must be resold to the fund. The payments from the pension fund are flexible: all units can be sold at once or in parts. An insurance contract can be concluded for the payment of the sum collected into the pension fund.
Read more. Taxation of payments