Pension system
In social discussion, the topic of pensions is one of the most resonant, and each of us should have at least a basic overview of the functioning and perspective of the pension system in Slovakia. It is built on three pillars, the combination of which should help you lead a dignified and satisfied life in retirement.
The largest part of the pension system is administered by Social Insurance, which pays the so-called state pension, i.e. I. pillar.
- In I. pillar, the money from the pension insurance is simply transferred from the contributors (workers) to the recipients (pensioners) without appreciation.
- Payments to the Social Insurance are no longer sufficient to pay all levies, and the missing amount for pensions is regularly paid from the state budget.
- The state pension system is solidarity-based, meaning that people with higher incomes contribute to the pensions of people with lower incomes.
Do you know that...?
Entitlement to the minimum pension arises only after 30 years of service and its amount is only 334,30 EUR.
The average pension at the end of 2021 was 505,68 EUR. Will it be enough for you?
The amount of future state pensions will be negatively affected by the sharp increase in the number of pensioners in the coming years.
Compared to the I. pillar, the II. pillar is voluntary and contributions to it are appreciated in the funds.
- In II. pillar, 5.5% is currently deducted from the mandatory pension contributions (18% from gross salary).
- Contributions are transferred to your personal pension account, where they are appreciated in the fund of your choice.
- Retirement savings are your property and the entire amount saved is subject to inheritance.
- By saving in II. pillar, you diversify the source of your retirement income and thus reduce the risk associated with the expected negative development in the I. pillar.
More information can be found on the II. pillar website.
Do you know that...?
Yields earned by investing in funds are tax-free.
II. the pillar is meritorious. Your future pension is determined only by the amount of your contributions and the achieved appreciation.
After meeting the legal conditions, you can have part or all of the saved amount paid out in cash.
Supplementary pension saving or III. pillar is a voluntary form of financial security with the aim of achieving significantly higher additional income to the state pension. Your employer can also contribute to III. pillar, which significantly helps build retirement savings faster and more efficiently.
- Saving in III. pillar is voluntary and flexible - you can adapt the amount of saving to your life circumstances.
- III. pillar is one of the most sought-after financial benefits and one of the few whose benefits you draw even after leaving working life.
- Contributions to your personal saving account, including your employer's, are your property and subject to inheritance.
- Your savings are appreciated in the assets of the largest global companies, stocks, real estate investments and bonds.
Do you know that...?
You can adjust the amount of your saving at any time without fees or restrictions.
Active clients of DDS Tatra banky will improve their pension by up to 50 % on average thanks to saving in III. pillar.
By saving in III. pillar, you can reduce your tax base up to 180 EUR per year.
Frequently asked Questions
https://www.tatrabanka.sk/en/dds/pension-system/