Workers Save – With AVL Or VL?

What form of saving age capital-forming payments versus capital-forming payments – worth for you? Saving for pensions in competition to invest in classic capital-forming payments (VL) is products because of tax and social security legal advantages. But who can benefit services (AVL) the conversion into Altersvermogenswirksame? Worth a closer look at the two forms of savings and their respective opportunities and risks from employer and employee perspective. Initial situation the demographic trends and foreseeable bottlenecks in the pension insurance carriers make useful saving for their own pensions. By the same author: General Electric Co.. Employees can convert a portion of their salary or salary in favor of a company pension plan later to receive a company pension. One speaks of deferred compensation and the employer must comply with this request. Is not an obligation to contribute financially to the retirement of its employees.

Due to certain tax and legal social security benefits saving for pensions increasingly in competition to invest in classic capital-forming payments (VL) delivers products. These are established for years and in many companies there are regulations that the VL employer pays voluntarily or under a collective agreement obligation in addition to the normal remuneration. In recent times, the unions in some sectors to have decided collectively to regulate retirement through deferred compensation and to dedicate to VL in Altersvermogenswirksame services (AVL). To take additional State funding in claims, while the providers of financial products show flexible and the conversion of VL in AVL as attractive prices, is worth a closer look at the two forms of savings and their respective opportunities and risks from employer and employee perspective. In addition an overview shall be given hereafter, the conditions under which a conversion of VL in AVL in working conditions without collective provision is possible and recommended. VL in the sense of the fifth of capital formation Act (VermBG) refers to contributions of the employer as well as the expenses of the employee his salary.

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