Saving under supplementary pension insurance is the only insurance that is subsidized by the state. The state encourages individual supplementary pension insurance with a tax deduction and lower income tax.
An individual can pay a monthly or annual premium in any amount. However in Slovenia 5.84% of gross wages are subsidized (in 2018 no more than 2,819 euros).
Higher pension - lower income tax.
A particularly favorable relief is for those who receive higher salaries. The order depends on the income tax class. Someone who gets 50% of the income in 50% of the income tax class.
Upon paying the maximum premium of 2,819 euros, the insured would get a good 1,400 euros back. The entire payment would have been invested in the selected pension fund.
What about those with a lower salary?
With an average net salary of € 1,000, you would get about € 270 when it paid the annual premium of € 1,000.
In the case of full-time employment, the money which was invested by your firm cannot be accessed until retirement.
On the other hand with an individual premium payment, you have more freedom in lifting. Of course, you will have to pay exit fees - around 1% on paid funds, 25% in advance of personal income tax, and the next year you will be charged a personal income tax).
If you raise a one-time fee of € 10,000 your equity will be € 7,200 (€ 2,800 less) with costs and taxes, assuming you are in the 2nd grade of the income scale (monthly net salary € 1,500).
A one-time lift can also move you to a higher income class. It should be noted that higher income tax can come after you retire.
Costs
We should not neglect the costs charged by the pension funds. In particular, entering costs are produced at each premium paid. They can range from 1% to 3%, which further reduces profitability.
Example
If I pay 83.33 euros every month, which is 1,000 euros at the end of the year. However, only 949.92 euros will be on the account (at EUR 83.33, 2% of entry costs = 4.17 euros, 83.33 - 4.17 = 79.16, 79.16 x 12 months = 949.92 euros)
For a one-time payment of € 1,000 ourequity would be € 980 (which is € 30 more).
Management fee for all funds is 1%. The most greedy is the commission for funded funds. Considering that most of the funds are guaranteed in bonds (the current amounts are very small (in 2018 the yield of 10-year Slovenian government bonds is 1.05%). The profit is only 0.05, which is subtracted by 2% inflation, we get negative 1,95% of the profitability. It means that we honor the fund and not the other way round.
