Only until 30 September do the participants of the former second pension pillar have time to notify their pension companies what they should do with the money that people have with them. There are 3 options:
– Transfer to supplementary pension insurance or DPS
– Payout to the account
– Return of the part contributed by the state back to the state and pay the rest to the account
The third option is likely to be thought of by few people, but the first two may be interesting for clients. If they have the funds paid out into their supplementary pension insurance or supplementary pension savings, they can significantly help their pension and continue to appreciate their funds in a similar spirit as they have done so far. We even recommend this option to clients – if you have already put money aside for old age, it is stupid to rob your older self of this money now.
Several significant changes have also taken place within supplementary pension savings, which will make this product more attractive for clients:
– Possibility of higher tax deductions for clients and their employers
– The opportunity to start saving for retirement as a child
– Fixed age from which funds can be drawn (60 years)
– Tax reasons – non-taxation of annuities for a period of more than 10 years
More information on pensions, changes in pension products, etc., can be found in BeTy in the BT Analysis section, where you can find a webinar recording, infographic and calculator.
However, if you still want to pay your funds back to your account, you need to inform the pension company that managed the fund. Clients who do not let their pension company know what to do with the funds will eventually have to go to their tax office to get them. Here he will have to apply for them again, fill in unnecessary forms and get the money during the next year at the earliest.
If you have one of your clients in the abolished second pillar, you have the last chance to go to them and discuss with them what to do with the saved funds before the pension funds send them to the tax authorities.