Cancel company pension: Information & alternatives

If you are considering canceling your company pension, there are certainly good reasons for this. However, the termination of this pension is not that easy. We have summarized for you what you should know about this topic.

You cannot cancel a company pension

If you need money in the short term, you cannot access the saved assets in the company pension.

• If you would like to draw on the contributions from the company pension before retirement, you will be disappointed: you cannot cancel a company pension.
• The contributions are only paid out when you reach retirement age - this is regulated by law. We explain in another article what you need to consider in relation to your tax bracket. The legislator only provides for a few exceptions, which are then decided in individual cases.
• Even then, the termination does not really make sense. Even in the rare event that the company pension is terminated, you will only receive the savings when you reach retirement age.
• In the event of a financial shortage, however, you can save on the contributions: You can either reduce the monthly contributions or suspend them entirely.
• The legislator provides for the possibility of making the company pension scheme free of contributions. However, this can involve fees. When you reach retirement age, the amount saved up to that point is paid out.
• In the next section, you will find out what to look out for when applying for such an exemption.

Alternative to canceling the company pension - so you save money

Before you suspend your company pension scheme, you should seek detailed advice from a financial advisor or insurance specialist.

• The specialist can tell you how best to drive financially and inform you about possible costs and losses in the pension in the event of an exemption from contributions.
• If you decide to suspend the contributions, you must submit the application to your insurance company in writing.
• In addition to your contact details and the name and address of the insurance company, the letter must also include the date and your signature. Don't forget to include your contract number.
• Formulate the letter in such a way that you apply for the exemption from contributions at the next possible date. You can also request a written confirmation of receipt of the application within 14 days.
• If you send the application by post, we recommend using the registered letter. So you have proof that you have sent the application.

You will find further information on the subject of company pension in a further article. If you would like to cancel your Riester pension, you will find templates in our next practical tip.