Pension legislation has undergone in recent years, a number of changes. In the future, probably more changes, usually for the worse for people in retirement for reasons of economic and demographic trends to follow.
Sufficient financial investments and retirement savings will play in the future an even higher role than is currently the case. Czech while no exception to legislative changes in regional state pensions also occurs in other developed countries. Developed countries will not be able in the future to guarantee the current level of pensions. Responsible citizens, to provide for retirement in many ways, always depending on personal inclination to risk and investment profile. "Products III. pension pillar, ie pension and supplemental retirement savings, however, should not be missing in any family financial portfolio. The monthly state contribution, the imposition of an annual tax deduction and tax-efficient pumping of employer contributions to the treaty are financially attractive benefits that would be a pity not to use " explains Emil Brož, CEO FinFocus.
The state contribution and tax deduction
Currently, it is already possible to conclude a contract only on supplementary pension savings. Nevertheless, the state contribution for pension insurance, which could conclude by the end of November 2012 and supplementary pension savings equal. State monthly allowance depends on the monthly deposit on the contract. Minimum state contribution of CZK 90 monthly savings to reach citizens on his contract, at least CZK 300 at the maximum state contribution of CZK 230 per month to reach clients monthly savings on their contract 1000 CZK and more. Contributions paid to contract and reduces the tax base and the resulting tax liability. On the tax savings, clients are entitled to a monthly savings contract 1000 CZK and more. The highest annual tax savings will reach CZK 1,800 clients monthly savings on the contract 2000 CZK and more.
Why use benefit employers?
The employer's contribution to III. pension pillar provides tax benefits employers and employees. Employer's contract is up to the aggregate annual amount of 30 000 CZK exempt from personal income tax, social insurance and health insurance. Although the employer will contribute to the employee on a monthly contract 2 500 CZK and costs employers will be 2,500 CZK. While increasing gross income by the same amount would be increased employer costs for 3350 CZK, because it would have increased the gross salary to pay compulsory social and health insurance. Due to the increase in the gross wage of CZK 2500 would increase net salary of employees of CZK 1,714 more, because employees would have been withheld tax on personal income tax and compulsory insurance, to contract III. pension pillar would receive the entire amount. "By achieving a gross salary, which depends on the lifestyle of an employee, the employee is financially advantageous to increase the employer contribution to pension funds or supplementary pension savings than the same amount increased gross wages," he explains Emil Brooch.
Low monthly deposits
Aggregate limit of CZK 30 000 for the employer's contribution to the contract is valid for one employee contributions to an agreement on supplementary pension savings, pension insurance or life insurance. "Employers and employees can contribute monthly eg. 1,300 CZK per contract on supplementary pension savings and CZK 1 200 for life insurance and reaches the maximum legal benefits. In practice, however, the maximum limit is often not used, "says Emil Brooch.
In III. pension pillar was saving at the end of August 2014 a total of 4.85 million citizens. The maximum employer contributions legislative support is not used on average by far. The average monthly employer contribution to the contract was CZK 669. State while the employer contribution is tax benefits for employers and employees, so it is advisable to use this support to the fullest extent.
Source: tz, editorially modified