Once You Have the Option to Retire
You may be curious about what to expect once you are entitled to retirement within a Private Pension System in which you may have invested your savings for years. You may either claim your savings partially, in full or enjoy a comfortable retirement by receiving a regular income through the Income Drawdown Plan. This provides retirement pay, and can take you one step closer to making your dreams come true.
Once you remain subscribed for at least 10 years from the date of entrance to the system and are 56 years old or more, you may access your retirement funds.
What is Smart Step Income Drawdown Plan?
Smart Step Income Drawdown Plan is a regular repayment option which can be chosen once the participant meets the criteria for retirement eligibility.
The Income Drawdown Plan enables you to utilize the savings in your pension account as a regular pension income. You can create a repayment schedule and timescale with Allianz Yaşam ve Emeklilik and the savings that remain will continue to be invested in pension investment funds as you continue to get paid your pension...
The flexibility ensured by the Private Pension Plan is also maintained by the Income Drawdown Plans.
The Income Drawdown Plan enables you to:
How to calculate the income you will receive under the Income Drawdown Plan
Any participant, who is entitled to retirement, will define at his/her discretion the amount of savings to be transferred to the Income Drawdown Plan and the number of years for which he/she will be paid a pension income. The repayment amount to be received by the participant within the first year will be calculated by the division of the total savings amount by the number of repayment years determined. The revenue to be received within the first year will be paid with respect to the payment terms to be preferred by the participant (monthly, quarterly, biannually, annually).
Points to be considered when forming your repayment schedule
The most important question to ask yourself when deciding your repayment schedule is, “for how many years can I receive an income from my savings?” First of all, you should calculate the amount that would cover your basic needs and expenses during your retirement. You should then assess the sufficiency of any revenue to which you are entitled to receive from the Social Security Institution and any other income. You should then determine the period of time which will allow you to best supplement your state pension and any other income you foresee.
Tax matters related to the Income Drawdown Plan
The payment made to the participant eligible for retirement, witholding tax of 5 percent will be made to the return of the entire savings.
Besides, any return from the pension investment funds, in which your savings are invested under the Income Drawdown Plan, will also be exempt from any income tax. Thus, your savings will continue to grow without paying tax on the interest.
Tax exemptions will continue to apply during your retirement.
We hope you will enjoy your days of retirement actively and in good health without having any problems. However, should you have any health problems, you will benefit from discounts by up to 25 percent in the event that you receive from contracted private healthcare institutions. All you have to do to benefit from such discounts is present your Smart Step Card.
You are also able to receive an emergency medical assistance service for free 24 hours a day by calling TELEMED24 on 0212 336 0 911.
Subscribers to the Income Drawdown Plan will be transported to the nearest healthcare institution free of charge in the event of emergency.