An important question remains
When you retire, your savings can be harvested. Before that, however, a crucial question still needs to be settled: pension, capital or a mix of the two? The question is whether your pension fund assets should be paid out as a lump sum or as a monthly pension.
There is no simple answer to this. The decision depends on your life circumstances, your willingness to take risks, your financial know-how as well as on your income and assets.
A regular pension provides greater security: The pensioner receives a dependable monthly income for the rest of their life. In the event of death, the surviving spouse benefits from a life-long guaranteed survivor’s pension, which is usually less than the deceased’s pension. A lump-sum payment, on the other hand, offers more flexibility. And in the event of death, the unused retirement savings pass on in full to the heirs.
Apart from this, the payout of pillars 2 and 3 needs to be coordinated before you retire. A staggered payout brings advantages from a tax perspective.