Pension payments within the scope of life-long annuity are only subject to tax based on the personal tax rate for the profit share of the annuity. Since 2005, 18% of the pension is taxable at the start of pension at the obligatory retirement age.
Should you decide on a one-time lump-sum settlement once taking the lump-sum option, however, the yield is generally fully taxable. Should the lump-sum benefit be paid at the age of 60 years and following a contract period of at least 12 years, only half of the yield is taxable.
The tax regulations apply to the classic and funds-bound pension insurance in equal measure.
Our benefits are your advantages
- Attractive, guaranteed interest yield and stable profit sharing
- Option between lump-sum settlement or life-long pension
- High, guaranteed life-long pension
- No medical examination required