Want to withdraw your pension savings all at once? The state will punish you for it, Stanjura plans
The Ministry of Finance is proposing that pensioners no longer receive state support for their retirement savings. Currently, the rules allow them to withdraw savings contributed by the state after five years. They often take advantage of this. Virtually everyone who saves for their retirement and has a state contribution withdraws their savings at once and does not use them as an insurance policy for their retirement. This is what the Finance Ministry, led by Zbyněk Stanjura (ODS), intends to prevent. The ministry has already prepared proposals to modify the functioning of the so-called third pillar, which are available to HN. At the same time, it plans to abolish support for saving seniors.
Source https://hn.cz/stanjuruv-urad-hodla-odradit-lidi-od-toho-aby-si-najednou-vybrali-vsechny-sve-penzijni-uspory
How is the payment of benefits from supplementary pension schemes and supplementary pension savings taxed?
For certain types of benefits, the funds saved by the participant under a supplementary pension scheme (SPS) or supplementary pension (SP) are subject to a withholding tax of 15%. The tax is paid by the pension company on behalf of the participants. However, this tax does not apply equally to all components of the savings under the PPS/PP: participant contributions and state contributions are never included in the tax base. However, for some types of payout, both PP and DPS are taxed on earnings.
Source https://nn.cz/daneni-vyplat-davek-z-pp-dps