The company pension scheme (bAV) is more than just a supplement to the statutory pension: it is a fundamental element for a secure financial future. Through targeted salary conversion, employees can not only benefit from employer contributions but also take advantage of significant tax benefits. In this article, you will discover how to best organize your bAV to benefit from both contributions and tax incentives. Find out the strategies that will help you efficiently integrate your pension savings and ensure long-term security.
Preparing the Path for Optimal Use of Company Pension Schemes
The company pension scheme (bAV) is a valuable tool for supplementing the statutory pension. To maximize its benefits, employees should first understand the different models of bAV, as each offers various advantages and risks. The direct promise, for example, is a direct benefit promise from the employer, which offers flexibility but can pose a significant risk to the employer. In contrast, the support fund is less common but stands out for its simple structure.
For workers aiming for high-yield investment forms, the pension fund may be appealing, as it is oriented towards the capital market. However, it also carries higher risks. The insurance policy and the pension fund, on the other hand, are particularly popular among workers who value lower administrative burdens and state support. Both models are also more flexible in the event of a job change, which is crucial for modern careers.
Another decisive aspect of bAV is the tax benefits. Contributions can be paid up to a certain limit, tax-exempt and free from social security contributions, thus increasing net income. This is further reinforced by the legal obligation of such systems, which must be co-financed by the employer with at least 15% when wages are converted.
In addition to these financial advantages, bAV also offers security and guarantees. The protection provided by the Pension Security Association is an important addition to ensure pension benefits in the event of corporate insolvency. For workers whose career paths may cross various companies, the portability of many bAV models is particularly important to avoid losses in the event of a job change.
The sustainable aspect of bAV offerings is becoming increasingly relevant. Employers who invest in sustainable options not only contribute to their employees’ financial security but also enhance their company’s image. Finally, professional consultation is essential to choose the right model from the wide range of bAV. A carefully considered combination of corporate and private pension schemes gives each retirement strategy a stable foundation. Regular review and adjustment of this strategy is essential for sustainable financial planning.
Maximize Your bAV: Successfully Capitalizing on Tax Benefits and Social Contribution Savings
The company pension scheme (bAV) offers extensive tax benefits that significantly contribute to the attractiveness of this form of retirement provision. Initially, it is essential to understand which contributions are tax-exempt. Contributions to a bAV are exempt up to 8% of the contribution ceiling (BBG) of the statutory pension insurance, which in 2025 corresponds to an amount of up to 7,728 euros. This allows workers to set aside significant amounts tax-free and supplement their future pension.
Another fundamental aspect is deferred taxation. During the accumulation phase, no taxes are paid on the contributions made, thus lowering the tax burden during the active working period. Only in retirement are the distributions taxed, which often leads to a lower tax rate since overall income is generally lower.
For employers, bAV also offers tax incentives: employers can deduct contributions to bAV as business expenses, thus reducing their own tax burden. This dual tax treatment contributes to making bAV an attractive model for both companies and employees.
The exemption from social contributions is another advantage. Contributions to bAV are exempt from social contributions up to 4% of the contribution ceiling. In 2025, this amount will be 3,864 euros. The advantage is clear: no social security contributions are applied to these contributions. Through salary conversion, where a portion of the gross salary is converted into bAV contributions, taxable income subject to social security is reduced, leading to direct savings.
A mandatory employer contribution further enhances the appeal of bAV. Since 2019, employers must contribute at least 15% of the converted amount as a contribution when saving social contributions. Many companies even offer higher contributions to motivate their employees to take advantage of this retirement opportunity.
In summary, the tax benefits and savings on social contributions are key aspects of company pension schemes, allowing employees to reduce their tax burden during their working phase while simultaneously increasing net worth for retirement. These benefits make bAV an indispensable supplement to the statutory pension that every worker should consider for comprehensive financial protection in old age.