The company pension scheme

The company pension scheme

The company pension scheme
As more facts speak for it, that in many countries pension will not be enough, millions of people make before addition. This makes sense, because by the state, the private saving for retirement will be promoted, for example, for the company pension scheme. Since 2002, every employee has a legal right to it.

Employer-funded pension. The company pension scheme offers many advantages compared to other forms of investment. Below everything worth knowing will be explained.

Occupational pensions - what's that?
Occupational pensions means all financial services, which suits the employers to their employees for retirement benefits, the supply of survivors in case of death or disability of supply at a total or occupational disability.

Occupational pensions - The various forms
Pension promise: The pension plan, the employer pays the employee a retirement, disability or survivor's pension. For this is the employer for him profitable pension provisions.

Direct Insurance: This is a completed employer-life insurance. Therefore, he is also the policyholder and contributors, the contributions to the taxable wages of the employee belong. The insurer pays the insured event occurs payment of the benefits to the employee or the bereaved.

Provident fund: This legally independent supply means is financed by contributions from sponsoring companies. It granted to the employee retirement benefits without legal entitlement.

Pension: this is paid by the employers in the salary part, the person to deduct from the salary of the employee, in the pension fund a. On leaving the company, the employee may continue the company pension scheme with their own contributions. For pension funds, compared to the pension fund can be partially achieved a higher return.

Who is eligible?
Permanent and temporary salaried workers
Part-time employees
Marginally employed

The salary - how does it work?
The workers convert a part of the gross salary or special payments in annuities. The employee does not pay its contributions as it is the case privately, itself one, but this assumes the employer. This also decides on the type of investment. The amounts can be, for example, created internally or externally directed to an insurance or a pension fund.

Advantages and disadvantages of salary
The share that pays the employee remains, tax and social security released. Every employee has a statutory right to a company pension. The condition is that he uses a portion of the salary for it. With an eventual change of job, the employee can transfer the acquired rights to his new employer.

Among the disadvantages of converting remuneration heard that retirees have to pay tax occupational pension in old age. The state is the exemption for pensions break down gradually by the year 2040 is approached. Thereafter, the entire pension will be adjusted as a percentage of the revenue. Wage shares which have been deducted in the active period, then missing in the calculation of the pension of the state, resulting in the lower payout.

Which company pension scheme is the most appropriate?
This question can not be answered in general because many different factors determine whether the remuneration is rewarding. Useful they may be in the following cases: A company pension is useful if not only you, but also your employer is paying. If you have private health insurance, you will enjoy the advantage of being retired on the salaries incurred no contributions.

Conclusion: Provision for old age, is always useful. To find the optimal pension that suits you best individually, you should seek advice from an independent expert.
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