← Retirement planning · Riester & bAV · bAV
Second pillar · Occupational pension
Save from your gross pay, benefit twice over.
With the occupational pension (bAV) you convert part of your gross salary into retirement provision. Because the contribution comes off before tax and social contributions, and your employer is legally required to chip in, it ends up costing you far less than what lands in your contract.
Why the bAV pays off
Three levers that work together.
The occupational pension is subsidised in several ways at once. It is precisely this combination that makes it so attractive for employees.
Save on tax
Your contribution reduces your taxable income. Up to 8 % of the pension insurance contribution assessment ceiling (BBG) stays tax-free.
Save on social contributions
Up to 4 % of the assessment ceiling, social insurance contributions are waived too. That lowers your own cost even further.
15 % employer top-up
Because your employer saves on social contributions through the conversion, they must add at least 15 % on top.
The solution
bAV Strategie Plus from Generali.
Generali · bAV Strategie Plus · Direktversicherung
A subsidised company pension that moves with you.
The occupational pension set up as direct insurance (Direktversicherung) through your employer. The contribution flows straight from your gross salary, you build a predictable extra pension and, if you wish, you can protect your ability to work at the same time.
Contribution from your gross pay
Free of tax and social contributions within the funding limits, with no application to the tax office.
Employer top-up included
The mandatory statutory top-up of 15 % flows directly into your contract.
Portable when you change jobs
Your company pension is yours. You can take it to a new employer or put it on hold.
Insure your ability to work too
If you wish, occupational disability cover (BU) can be built into the company pension.
What really works for you
About 55 € net becomes 115 € for your pension.
An example shows the leverage. You convert 100 € a month from your gross salary.
Example case: an employee, around 45.000 € gross a year, tax class I, contribution within the funding limits. The saving depends on your personal income. In retirement the company pension is taxed on a deferred basis, and contributions to health and long-term care insurance usually apply as well. Salary conversion can slightly reduce your later statutory pension.
Frequently asked questions
Good to know.
What does salary conversion mean?
You give up part of your gross salary, and your employer pays that amount straight into your company pension. Because this happens before tax and social contributions, your net pay drops by less than the full contribution.
Why does the bAV pay off several times over?
You save on tax, you save on social contributions, and your employer adds at least 15 % on top. A manageable net cost turns into a much larger contribution working for your pension.
What happens to my company pension when I change jobs?
It is yours. You can take the contract to a new employer, continue it privately or leave it paid-up. The balance you have built up is preserved either way.
Are tax and contributions due in retirement?
Yes, on a deferred basis: what you save today is taxed when you draw your pension, usually at a lower rate. Contributions to statutory health and long-term care insurance generally apply to the company pension as well, though there is a tax-free allowance.
Is the bAV worthwhile for low earners too?
Often yes. For employees earning up to 2.575 € gross a month there is a dedicated subsidy: if the employer pays extra into the company pension, the state reimburses part of it. That makes getting started especially affordable.
Free & non-binding
Make more of your gross pay.
In our first meeting we work out how much company pension you can build from what net cost, and how to make the most of the employer top-up. Honest, easy to understand and without pressure.