Pension savings with state contribution and tax relief

Pension savings with state contribution and tax relief Corporate offer www. generalipenze. cz © Generali penzijní společnost, a. s.

2 On the market for over 20 years. . . Generali penzijní společnost (Generali PS) was founded in 1994. Since 2008 it has been part of the Generali group, a leading global insurance company. § We are building an image of a provider of high quality services for old-age savings. § We offer our clients a wide range of participation funds and savings programs. § We manage pension savings for the employees of 5 000 companies. § Our dense distribution channel network means we are capable of providing our clients with quality and easily accessible service. https: //www. generalipenze. cz/o-nas © Generali penzijní společnost, a. s.

3 Largest on the market Generali PS currently manages CZK 124 billion belonging to 1. 1 million clients. market share aum 2 q 2020 PSKB 13% Allianz 11% AXA 10% Conseq 2% PSČS 19% ČSOB 12% Generali PS 24% © Generali penzijní společnost, a. s. NN PS 9%

4 Why choose Generali PS? Credibility 1. 1 million clients rely on Generali PS. We manage almost CZK 124 billion. CZK 104, 7 billion total pension payments since Generali PS entered the market. Stability TF appreciation has long been among the TOP 3 on the market. http: //www. apfcr. cz/zhodnoceni-prostredku-ucastniku/ Appreciation Leading yields in both the transformed fund and participation funds. Employers One quarter of our clients enjoy a company contribution. Services Above-standard service – SMS Info and on-line access to client accounts at www. klientskyportal. cz © Generali penzijní společnost, a. s.

5 PSČP awards Best Innovator in Central and Eastern Europe Pension Company of the Year Zlatá koruna [Gold Crown] Superbrands Zlatý měšec [Gold Purse] Finparáda © Generali penzijní společnost, a. s.

6 Why save for your retirement? 1974: 194 000 children born 2015: 110 000 children born § THE NUMBER OF SOCIAL INSURANCE PAYERS IS FALLING § EITHER PENSIONS WILL FALL OR SOCIAL INSURANCE CONTRIBUTIONS WILL RISE In 2050, people will be entitled to half the current old-age pension! © Generali penzijní společnost, a. s.

7 Pension contribution = Savings for the employer With a wage rise, the employer and employee pay the state levies towards social insurance, health insurance and income tax. Employer: 34% Employee: 11% + 15% Contributions towards pension savings § of up to CZK 50 000 a year are not subject to either social or health insurance levies, § they are a tax-deductible cost for the company, The condition is that the employer’s pension savings contribution is indicated in one of the following documents with the employer: the collective agreement, employment contract or an internal regulation. § in addition, for the employee up to CZK 50 000 a year is exempt from income tax. © Generali penzijní společnost, a. s.

8 Example - how much you can save on costs Employee income increased by CZK 2 000 Increase in gross wage in CZK Contribution to SPS in CZK 2 000 622 0 1 378 2 000 622 Annually 16 536 24 000 7 464 Employer costs 2 680 32 160 2 000 24 000 680 8 160 Rise in employee income Employee levies 11% + 15% Employee net income Annually © Generali penzijní společnost, a. s. Difference in CZK

9 100 employees: rise of CZK 500/month 15 employees: rise of CZK 1 000/month Specifically Increase in gross wage in CZK total Contribution to SPS in CZK total Rise in employee income 100 500 50 000 Employer costs 670 67 000 50 000 17 000 Annual costs 8 040 804 000 600 000 204 000 Rise in employee income 15 1 000 15 000 Employer costs 1 340 20 100 1 000 15 000 5 100 16 080 241 200 12 000 180 000 61 200 780 000 265 200 Annual costs Total costs © Generali penzijní společnost, a. s. 1 045 200 Difference in CZK

10 Pension savings = advantageous choice for clients What is Supplementary Pension Savings? Regular saving or investing § § § state support up to CZK 6 360 a year! employer contribution safe with a long-term investment horizon without entry or exit fees A tool for ensuring income after retirement. © Generali penzijní společnost, a. s.

Security for retirement For connoisseurs Gold, art. . . Regular investments Mutual funds Own housing Mortgage Products with state support Penzijko + stavebko © Generali penzijní společnost, a. s. g Somethin for ive s s e r g o r p users A good improvement for the majority A necessary foundation for everybody

Why Supplementary Pension Savings (SPS) STATE CONTRIBUTION up to CZK 2 760 a year SIMPLICITY APPRECIATION TAX RELIEF up to CZK 3 600 a year POPULARITY MINIMAL FEES EMPLOYER CONTRIBUTION DESIGNATED PERSON FLEXIBILITY PRE-RETIREMENT DIVERSIFICATION LIQUIDITY after two years of saving The cheapest savings product © Generali penzijní společnost, a. s.

13 State support © Generali penzijní společnost, a. s.

14 What the employer contribution means for the employee “I want my company to give me a CZK 2 000 raise. ” Increase in employer costs of CZK 2 000 Employer costs Employer levies 34% Increase in gross wage in CZK Contribution to SPS in CZK 2 000 507 0 Difference in CZK Employee gross income 1 493 Employee levies 11% + 15% 464 0 1 029 2 000 971 12 348 24 000 11 652 Employee net income Annually © Generali penzijní společnost, a. s.