The private pension plan BVV have asked if I want to continue my payment (30 Euro a month)even though I have left my employer and Germany. Any point in continuing this does anyone have a similar experience?
http://www.bvv.de/cms/media/pdfdokumente/englischesinfomaterial/BVV_basic_pension_coverage_5-2008.pdf
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Continue paying BVV Pension monthly once leaving? - Germany
Have the option of doing this
well, as always the answer can only be: it depends...
on the plus side of this is, that the plan offers a form of income protection (against occupational disablity) and even life insurance - though I can't say how much the coverage is worth if you continue to pay 30 EUr/month only. But that would be my first recommendation that you ask them
1) if you continue to pay 30 EUr month until pension age, what will be the guaranteed pension paid out?
2) how high is the income protection cover (i.e. what monthly pension will be paid out of you should become occupational disabled
3) and how much the life insurance coverage is worth
Then check if you already have sufficient coverage elsewhere for income protection and life - if not, my advise would be to continue paying in.
on the downside: while in Germany you did have a big tax incentive to pay into the plan as the payments came out of your gross salary (most likely) or where even fully paid by employer. Now you don't have this and your new tax authorities where you move(d) may not allow yo to write off the amount anymore.
One other thing in favor would be that you have some protected pension fund in EUR for later if you plan to settle in a country with different currency, because that could add stability to your pension income, too.
Cheerio
on the plus side of this is, that the plan offers a form of income protection (against occupational disablity) and even life insurance - though I can't say how much the coverage is worth if you continue to pay 30 EUr/month only. But that would be my first recommendation that you ask them
1) if you continue to pay 30 EUr month until pension age, what will be the guaranteed pension paid out?
2) how high is the income protection cover (i.e. what monthly pension will be paid out of you should become occupational disabled
3) and how much the life insurance coverage is worth
Then check if you already have sufficient coverage elsewhere for income protection and life - if not, my advise would be to continue paying in.
on the downside: while in Germany you did have a big tax incentive to pay into the plan as the payments came out of your gross salary (most likely) or where even fully paid by employer. Now you don't have this and your new tax authorities where you move(d) may not allow yo to write off the amount anymore.
One other thing in favor would be that you have some protected pension fund in EUR for later if you plan to settle in a country with different currency, because that could add stability to your pension income, too.
Cheerio
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