Some want to save as much as possible for retirement, others value a higher net salary today. This is exactly where choice plans come in, an instrument that brings more self-determination to occupational pension provision.
A choice plan means that the pension institution offers its insured persons different pension plans, and each affiliated person can independently choose which one they want. Up to three variants are common, often labelled Basic, Standard and Top, which differ in the level of savings contributions. Anyone who saves more builds up a higher retirement balance, but accepts a somewhat lower net salary in return. Important here: only the insured person's contribution is variable; the employer's contribution remains the same in all plans. This preserves equal treatment. As a rule, the chosen plan can be adjusted annually if one's personal situation changes.
Choice plans are therefore not a free choice of pension fund, not the election of the board of trustees and not an annual document, but a genuine way to shape provision within one's own pension fund solution. They make provision more personal and at the same time sharpen the awareness that the level of one's later pension can be actively influenced as early as today.