What are pension programs (private insurance)?

Pension programs (private insurance) are long-term savings programs that supplement state pension. You pay an amount each month that is invested and earns interest, creating capital for your retirement. They differ from state pension as they are based on your own contributions and investment returns, not years of service.

What is the difference between guaranteed capital and Unit-Linked programs?

Guaranteed capital programs offer a guaranteed minimum return - you know from day one the minimum amount you will receive at maturity. Unit-Linked programs invest your contributions in mutual funds - there is no guaranteed capital, but there is potential for much higher returns long-term.

How much should I contribute monthly to a pension program?

The amount depends on your goals and income. Even €100-200 monthly, if you start early (e.g., at 30), can create significant capital thanks to compound interest. Example: €100/month for 30 years with 3% return can reach €58,000.

How are pension programs taxed?

From 2024, taxation depends on years of insurance: Up to 10 years (15%), 11-20 years (10%), 21-25 years (7.5%), over 26 years (5%). In the case of monthly pension, rates are reduced by 50%.

Which investment strategy should I choose?

If you're young and have time until retirement (20+ years), the aggressive strategy may yield better returns. As you approach retirement, prefer more conservative options to reduce risk.

Can I choose between lump sum and monthly pension?

Yes, at program maturity you can choose between lump sum payment (receive all capital together), monthly pension (for life), or pension with guaranteed period (for beneficiary protection).

Pension Programs Calculator: Private Insurance & Retirement 2026

How do pension programs (private insurance) work?

Pension programs (private insurance) function as a long-term savings "piggy bank", aiming to supplement state pension. Their calculation is not based on years of service (like EFKA), but mainly on your own contributions and investment returns. The basic principle is systematic savings. You pay an amount (premium) every month, semester, or year, which the insurance company invests. There are two main types of programs: Guaranteed Capital Programs (you know from day one the minimum amount you will receive at maturity) and Unit-Linked Programs (contributions are invested in mutual funds with potential for much higher returns long-term).

How is the final amount calculated?

The calculation of the benefit depends on three main variables: The Premium Amount (the more money you save each month, the larger the capital), The Program Duration (time is your greatest ally due to compound interest), and Investment Returns (in Unit-Linked programs, market performance determines the final result). Example: If you save €100/month for 30 years, you have paid a total of €36,000. With an average annual return of 3%, the final amount can approach €58,000.

What benefits do pension programs provide?

At program maturity (usually between 60-67 years), you have the following options: Lump Sum (you receive all accumulated capital together), Monthly Pension (the capital is converted into a monthly amount paid to you for life), and Pension with Guaranteed Period (if the insured dies early, the pension continues to be paid to beneficiaries for a specific period). Many programs also include Premium Waiver (in case of permanent disability) and Life Insurance (in case of death before maturity).

Tax Benefits (New 2024 Framework)

From 2024, taxation of benefits from private programs (especially group programs) depends on years of insurance: Up to 10 years: 15% tax on lump sum, 11 to 20 years: 10% tax, 21 to 25 years: 7.5% tax, Over 26 years: 5% tax. In the case of monthly pension, the rates are reduced by 50%.

Note: Returns shown in the calculator are indicative and based on market averages. Actual investment returns may vary significantly. Past performance does not guarantee future results. For personalized investment strategy, consult a certified financial advisor.