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State-sponsored retirement provision

State-sponsored retirement provision is a form of pension insurance, under which, upon reaching a defined retirement age, a life-long annuity is paid out. Usually a survivor’s provision is also arranged, under which following the death of the insured person an annuity continues to be paid to the insured’s widow(er).

A particular feature of state-sponsored retirement provision is the existence of a capital guarantee and a state premium. Moreover, the product also enjoys preferential tax treatment, with no insurance tax, no capital yield tax and no income tax being accrued.