Instalment or pension? It depends!

It depends on your financial planning. You can determine whether the payout will happen as a monthly lifelong pension or as instalments. It’s your decision over what period of time the instalment payments will go. And the best of all: You can even combine both options!

Please think about it: The different payout options have different tax impacts. You’d best discuss it with a tax adviser.

Five things you should know about the payout!

  1. You determine how you receive your payout
    With the credit balance that is based on your contributions and the Mars contributions, you can decide whether it should be paid out in instalments or as a pension. Or everything combined together. It’s all very flexible. You’ll find the ruleshere.
  2. You decide when you retire
    Retirement in the Mars pension plan is normally oriented to the statutory retirement age. But, of course, you can retire earlier: The earliest you can request the benefit is on your 60th birthday. But beware – those who enter retirement before reaching the statutory retirement age will have to expect deductions. More on that here.
  3. Not just a pension plan
    Don’t forget: You’re not protected only for retirement. There’s also a payout in the event of disability or death. For more information simply take a look at this link!
  4. Taxes will be due now
    The contributions from Mars and from you were tax-exempt in all levels. Now, upon payout, taxes will be due. And social security contributions will also be incurred. Nonetheless this is an advantage for you: As a rule, your tax rate in retirement is lower than your tax rate during your working life. And when it comes to social security contributions, the contributions for the state pension and unemployment insurance end (however, the full employer and employee rate is to be paid for health and long-term-care insurance).