Savings in the second pillar are more complex when you work abroad

The Slovaks do not have a chance in the second pillar abroad. Slovaks who argue in the second pillar can not count on the Social Insurance Bank delivering their contributions to the second pillar. There are, however, a few exceptions.


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"The social insurance company warns people who do profitable activities outside the territory of Slovakia who, during their activities abroad, does not contribute to pension savings," said Social Insurance Agency.

The basis for sending contributions to the second pillar of the Social Insurance Company is the reimbursement of social contributions. People working abroad will probably not pay contributions in Slovakia, so they are not entitled to receive the second pillar from the Social Insurance Company. The spins will restart after returning to Slovakia. "The condition for the contribution to the second pillar is the existence of an active insurance relationship in the Social Insurance Company and, as a rule, the persons working abroad are not confronted with their personal pension account in the second period. If they return to their work in Slovakia and are subject to the Slovak social security system, the Social Insurance Company's pillar will automatically recover, "he informs. Social Insurance Agency.

People who work abroad can continue to save, provided that their work abroad is based on a contract that includes the obligation to contribute to the second pillar. This may be the case, for example, when Slovak companies send their employees abroad, but they are still working in Slovakia. "Exceptions are only those who, even during their activity outside of Slovakia, remain subject to Slovak legislation and therefore pay insurance premiums to the social insurance company," notes the Social Insurance Agency.

People who want to earn money during their stay abroad in the second pillar have the opportunity to volunteer. Until 1 January 2017, these contributions were tax deductible costs, but this option was not available since the start of last year. People who work abroad only feel this change when they pay taxes in Slovakia.

An interesting change, the second pillar has gone through this year. From the age of 52, the customer's contributions to the second pillar are automatically transferred to the guaranteed funds. Sporitelia thus has a more precarious but less generous income. However, for voluntary contributions to the second pillar, the obligation to transfer to the guaranteed funds does not apply. Voluntary athletes are therefore likely to run more risks and may be better able to appreciate their resources.

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