How does saving in a pension fund work?

Occupational pensions, often referred to as the pension fund or pillar 2, are a central component of your financial security in old age. The principle behind it is simple and based on partnership: you do not save alone, but together with your employer for your future.

Your personal retirement savings: How they grow

Every month, a specific amount, the so-called savings contribution, is deducted directly from your salary and paid into your personal pension fund account. Your employer supports you in this by also paying a contribution, which by law must be at least as high as your own. Many companies even pay more.

Your accumulated capital, known as retirement savings, is made up of several parts:

• Your savings contributions: The monthly amount paid in from your salary.
• Your employer's savings contributions: An amount at least as high, which is paid in additionally.
• Vested benefits brought in: This is the pension fund balance that you bring with you from your previous employer to your new pension fund when you change jobs.
• Interest and returns: Your savings earn interest. The amount of interest depends on the investment strategy and developments on the financial markets. This allows your capital to grow additionally over the years.

The amount of the savings contributions is regulated by law and increases with age. This ensures that solid pension provision is also built up in later professional years.

Your savings – flexible and secure for your future

Your pension fund savings are more than just a savings account. They offer you security in various phases of life.

• When changing jobs: If you change employers, you simply take your entire accumulated savings – the so-called vested benefits – with you. It is transferred directly to your new employer's pension fund so that your pension cover continues without interruption.
• In the event of disability or death: The pension fund not only secures your old age. Should you become disabled or die, the contributions paid in serve as the basis for disability or survivors' pensions. This means you and your loved ones are financially protected even in difficult times.

Keep track of your savings

Transparency is important to us. That's why you can track the development of your retirement savings at any time. You can find all the important information on your personal insurance certificate – which is, so to speak, the annual statement for your occupational pension.

Your next steps for clear pension planning

A well-planned pension provision provides security. Here are two concrete steps you can take to actively maintain an overview:

1. Check your insurance certificate: Log in to our online portal ePlix and view your current insurance certificate. It shows you your savings to date and your projected benefits.
2. Get personal advice: Do you have specific questions about your situation? Our multilingual team will be happy to help. Contact us for a non-binding consultation.