PENSION PRODUCTS

Pension is basically a deferred wage payment. The objective of this payment is to enable the participants to provide for themselves through an income upon reaching the pensionable age. As they say, you put something aside for your old age.

Unfortunately, there is still no mandatory pension in our country. In countries without mandatory pension systems, the elderly, when they reach the pensionable age, are often faced with financial problems, because most of the time they have not made arrangements. The income drops considerably, forcing them, even after the pensionable age, to keep working to be able to provide for themselves.

The shrinking family size of the last few decades means that these senior citizens, contrary to the past, cannot fall back on their children either. To top it all, the AOV- pension (State Old Age Pension) is insufficient and if structural reforms are not made there is no
guarantee for its continuity.

The pension system in our country is characterized by a three-pillar system.

  1. A basic or state pension (AOV) that entitles someone to a minimum pension, provided that some legal criteria are met;
  2. A supplementary (company) pension;
  3. An individual pension.

A pension cannot be fiscally excessive. We’re talking about excessive when a pension, in case of full career earnings (35 years or more), does not exceed 70% of the last earned wage including the AOV - pension. For the BES islands the maximum is 100%. If the pension complies with this fiscal guideline, then the premium contribution is deductible from the annual wage.

Pension Products