The Waiting Period After the Buy-In

A voluntary buy-in into the pension fund is attractive for tax purposes and improves retirement benefits.

But anyone who buys in should know one important rule, otherwise the intended tax advantage can be lost retroactively. It concerns the blocking period.

After a buy-in, a three-year blocking period applies, specifically for capital withdrawals. This means: anyone who buys in voluntarily may not withdraw the pension savings as a lump sum in the three years thereafter. If they do, the tax deduction for the buy-in is refused retroactively. The important qualification: the blocking period concerns the capital withdrawal. A pure pension withdrawal is not affected in the same way. So it is not the case that no blocking period applies at all, nor is the period simply tied to a certain age, but rather to the form of withdrawal within the three years.

For practice this means above all one thing: anyone who wants to buy in shortly before retirement and then withdraw the capital must plan the sequence and timing carefully. Anyone who observes the three-year period secures the tax advantage without nasty surprises. Early planning, ideally with professional guidance, is particularly worthwhile here.