A small state pension will increase your second pillar payments

In the first three weeks of January, over 1,000 AVS pension customers increased their contributions to the 2nd pillar. Nearly 80% of these faster decision makers start contributing 6% of their gross monthly salary instead of the previous 2%. Those who decided for larger contributions generally also collected larger sums, on average just over 20,000 euros. Those who chose the 4% payment installment collected on average almost 14 thousand euros. According to January data, the fastest growing deposits were male savers, aged between 40 and 45, who today save in LHV Indeks and XL pension funds.

Joel Kukemelk also pointed out that both the pension fund landscape and the collector himself have changed in the last five years. “We at LHV can see that after the pension reform, the attitude and concept of accumulation on the part of those who remain in the 2nd pillar have changed considerably. While previously a rather passive attitude prevailed regarding the management of one’s savings and pension funds , now the collector is more aware, more demanding, but also takes on more responsibility,” Kukemelk said. He added that the low replacement rate of today’s and tomorrow’s pensions, i.e. the complexity of meeting the retirement age, is beginning to emerge more and more acutely. The tax collector understands that he cannot rely only on the State for a better pension, but must also collect it himself more quickly, filling both the II and III columns. “Since the largest 2nd pillar contributions come, as today, from the gross salary, this immediately means a 22% income tax gain – the best long-term financial decision anyone can make for themselves,” adds Joel Kukemelk .

2024-01-23 19:55:00
a-small-state-pension-will-increase-your-second-pillar-payments