English
In my 40s

Payments

There are no restrictions on making third pillar payments: you have the right to withdraw the money you have accumulated at any time, in whatever amount is suitable for you. To do this, submit a payment application or enter into a fixed-term or lifetime pension agreement.

The amount of payments depends on the size of the accumulated reserve and the length of the selected pension period. The freedom of choice is great – from a lump sum to a lifetime pension.

You can take out a fixed-term or lifetime insurance contract to receive third pillar payments. You can also specify a guarantee period when receiving lifetime pension payments from the insurance contract. In the event of the policyholder’s death, this ensures that a successor will receive payments for the selected period.

You will receive payments from the voluntary pension fund upon redemption of units. Payouts are flexible: you can sell all units at once or in instalments.

Taxation

The income tax rate of 0%, 10% or 20% depends on several factors:

  • your age;
  • the time of the initial acquisition of the units of the voluntary pension fund and/or the conclusion of the pension contract;
  • the method of payment you have chosen: lump sum, fixed-term or lifetime pension contract.

 

Application of tax rates starting 1 January 2021:

A tax exemption shall apply if

First units were acquired or a pension contract was entered before 1 January 2021 First units were acquired or a pension contract was entered after 1 January 2021
you are 55 years of age or older and you are of retirement age or older, or you have less than 5 years until you reach retirement age and
at least 5 years have passed since the conclusion of the pension contract or the initial acquisition of the units at least 5 years have passed since the conclusion of the pension contract or the initial acquisition of the units
the insurance company will execute lifetime payments to you (annuity) the insurance company will execute lifetime payments to you (annuity)
you have no capacity for work
(tax exemption applies upon presentation of a certificate, application is submitted at a bank office)
you have no capacity for work
(tax exemption applies upon presentation of a certificate, application is submitted at a bank office)
you will receive an insurance benefit in case of death under a third pillar insurance contract concluded after 1 May 2002 you will receive an insurance benefit in case of death under a third pillar insurance contract concluded after 1 May 2002

A 10% tax incentive applies if

First units were acquired or a pension contract was entered before 1 January 2021 First units were acquired or a pension contract was entered after 1 January 2021
you are 55 years of age or old and you are of retirement age or older, or you have less than 5 years until you reach retirement age and
at least 5 years have passed since the conclusion of the pension contract or the initial acquisition of the units at least 5 years have passed since the conclusion of the pension contract or the initial acquisition of the units
you receive fixed-term payments under the pension contract you receive fixed-term payments under the pension contract

you opt for a lump sum payment from the pension fund

you opt for a lump sum payment from the pension fund

you lack capacity for work and opt for a lump sum payment (excludes the above conditions) you lack capacity for work and opt for a lump sum payment (excludes the above conditions)

Income tax of 20% applies if

First units were acquired or a pension contract was entered before 1 January 2021 First units were acquired or a pension contract was entered After 1 January 2021
you are under 55 years of age or you have more than 5 years before you reach retirement age or
less than 5 years have passed since the conclusion of the pension contract or the initial acquisition of the units less than 5 years have passed since the conclusion of the pension contract or the initial acquisition of the units