Germany

The pension is an old-age pension and in Germany to officials is carried out, who reached the retirement age. While the pension is fully free of income tax after departure of the supplying free allowance, the fictitious yield portion becomes from the pension as well as the employee portion of the pension contributions, thus half of the exhausted contributions, taxes.

2004 passed the Bundestag the age income law, which plans that the pensions are gradually more strongly taxed of 2005 to to 2040. In response expenditures can be set off for the age precaution to larger extent than extra charges taxreducing (transition for stored taxation).

Maximally attainable pension height

At the end of of 2001 passed supplying law of change transferred the cuts into the old-age pension of workers and employees in the FRG, ordered with the pension reform, "“effect"” on the pensionses of public servants starting from 2003. To 2010 therefore the pension rises fail around in each case 0.4 per cent lower than the paying increases of the active officials. The maximum supplying set, which officials reach after 40 service years, is reduced from 75 per cent to 71,75 per cent of the last income. The Federal Constitutional Court in Karlsruhe rejected 2005 three complaints of concerning against the sinking of the pensions on 71,75 per cent of the last content as unfounded (Az.: 2 BvR 1387/02).

Comparison between old-age pension and pension

A direct comparison between old-age pensions and pensions is difficult because of different design fundamentals. Coworkers of enterprises keep to the old-age pension an operating pension often additional. This applies under normal conditions only with large-scale enterprises and larger medium-size enterprises as well as to persons in the public service. Many operating pensions are however quite small - under 100 EUR per month. Pensioners, who acquired pension claims in former times as employees or workers, keep to the pension a pension additional.

Altogether an average pensioner receives a legal old-age pension after 45 contribution years from 1157 EUR per month (gross, 2005, no Christmas benefit). An average pensioner receives something over 2600 EUR per month (gross, additionally Christmas benefit). Because of different income distribution of the two groups these numbers are however only conditionally comparable. If one regards the average gross income of the pension-requiring employees of scarcely 30,000 EUR in the year 2005, the future average pensioner absolutely an additional age precaution is recommended, if it wants to hold only approximately its standard of living at the age. To officials this does not apply in this sharpness.

Between old-age pensions and pensions there are the following differences:

• Pensions are computed after the last income, old-age pensions after the incomes obtained in all man-years.
• Pensioners do not receive (at present still) Christmas benefit, pensioners however.
• Pensions reach at present maximally scarcely 75% of the last gross income, old-age pensions 48%.
• Pensions will sink in the future on maximally something over 71%, old-age pensions against it on 40%.
• Pensioners pay health insurance (contribution in EUR is not proportional and does not sink therefore not with the pension) and income tax on the pension income, old-age pensioners only to health insurance. If the pensioner does not have other income, the pension remains usually for taxation unloaded.

See also: Child pension, pension tax, pension

Austria

In Austria in former times pensioners were only former officials, while the pensioners worked formerly in the private sector, today refer all former employees a pension, which are not subject however to same design fundamentals, as e.g. calculating times.

The word pension for a continuing achievement from the pension insurance was introduced to Austria by law novellas in the year 1962 - before the ASVG (general social security law) called also pension insurance benefits pensions. This linguistic will however to today thereby promoted that in Germany those achievements, for which in Austria the word pension is used are called still pension. Further also the right of the European union uses the word pension for achievements from pension insurance.

Pensions in Austria the continuing achievements from the legal accident insurance are called.

The today's designation of pension subscribers are however no pensioners separate pensionists.

Austrian officials do not refer a quiescent benefit, pension as old-age pension. The quiescent benefit is carried out by the former service authorities, a pension insurance for officials gives it in the Austrian social security not.

Despite the so-called pension harmonization on 1 January 2005 the Austrian pension system differentiates further the groups that dependently persons employed, farmers, independent ones and the officials.

Switzerland

The age precaution in Switzerland is based to 3 column principle on that. In the three-column principle of the age precaution AHV and IV form together first and/or the national column. The pension achievements of these two insurance are to secure the existence need. In addition in special cases the auxiliary achievements (EL) help, to finance the necessary life need.

The first column supplemental by the pension fund, the vocational age, leaving and invalid precaution (Federal Constitutional Court). These two columns secure at least 60% of the wages referred last; the second column is to make the continuation for the used possible. The first column is mandatory for all, i.e. also for independent-recruiting and - e.g. Mothers or fathers, who lead the household and care for children. The second column must only employees and employees follow. The third column - which self precaution for the covering of further needs - is voluntary, but favours partly for taxation in contrast to usual saving.

These three columns form together the three-column concept, which are embodied in the Federal Constitution since 1972. It is to cover the individual need in the pensionable age.

The AHV is the most important branch in the Swiss social security system. Mainly two pensions are aligned: One for retired one, the other one for leaving. The old-age pension makes a financially to a large extent independent retreat possible from the working life. The leaving pension wants to prevent that to the wrong, which the death of parents or a spouse brings with itself a financial state of distress is added.

For the vocationally active population 12 years after the entry into force of the AHV in the year 1948 the invalidity insurance (IV) was created. It grants achievements, if the earning power for health reasons is strongly reduced or and the integration in a certain occupation and social life has the goal.

See also

Tax, tax types, retirement

• dirt daierung.ch/meinepensionierung/finanziellefragen/dasdreisaeulensystem.html pension & age precaution in Switzerland

Articles in category "Pension (old-age pension)"

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