And yet one more pension question...

2 posts in this topic

Are there pension schemes in Germany such that, come pension "day", one is not necessarily forced to convert the pension pot into an annuity?

I mean of course private pensions.

I think in the UK there are, and they are called pension drawdown.

I have never heard of such a thing in Germany, so I suspect the answer is "no".



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Hi @Gambatte,


Company pensions can be taken as a lump sum if preferred, so you have that option if you're an employee.


The Riester allows you to cashout 30% at retirement. 


Then the "private rente" is a pension plan that allows full cash out, but there is no tax relief at the front end for this pension. You only receive your pension tax free at retirement, even the growth / investment return on the pension is taxable in retirement, so these really are just an expensive savings plan. 


Hope that helps!




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