Pension saving allows you to build up a supplementary pension on top of your state pension. It is also a tax-efficient way to save. Depending on your personal situation, you can claim back up to 30% of the amount saved in the form of tax relief.
You can accumulate an additional pension of this kind by putting your money into either a pension savings fund or a pension savings insurance plan.
What determines the return on a pension savings fund?
If you decide to save more for retirement by investing in a pension savings fund, your return depends on the performance of the investments in that fund (mainly shares and bonds).
For example, what is the mix of shares and bonds? Which shares has the fund manager included in the fund? And when does he/she buy or sell again? Your fund manager makes these choices on your behalf, based on the investment policy that each fund is required to draw up.
Lastly, the charges associated with your fund also play a role, of course. The lower they are, the higher the return you receive. Find out more about the costs associated with supplementary pension saving.
What makes up the return on a pension savings insurance plan?
If you want to build up additional retirement income through a pension savings insurance plan, choose a safe product whose return is made up of a guaranteed rate of interest and possibly a variable, non-guaranteed profit share.
Tip: Compare the different savings insurance plans with each other and look closely at the number of years for which the interest rate is guaranteed for each deposit. At KBC, this rate is guaranteed for the entire duration of your contract.Be sure to compare the entry charges and management fees, too. Find out more in this article which compares the costs associated with pension saving.
Comparing pension savings funds with pension savings insurance plans
So, to sum up, you have different ways to build up more retirement income. A pension savings insurance plan gives you the most security, whereas a pension savings fund could earn you a higher return (depending on the performance of the stock market).
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Pension savings fund
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Pension savings insurance plan
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Tax relief |
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Guaranteed rate of interest |
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Non-guaranteed profit share |
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Chance of a higher return |
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| Pension savings funds | Pension savings insurance plans | |
Tax relief
Guaranteed rate of interest
Non-guaranteed profit share
Chance of a higher return
| Pension savings fund |
Pension savings fund |
| Pension savings insurance plan |
Pension savings insurance plan |
Tax relief |
More information |
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| Pension savings fund | |
| Pension savings insurance plan |
Guaranteed rate of interest |
More information |
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| Pension savings fund | |
| Pension savings insurance plan |
Non-guaranteed profit share |
More information |
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| Pension savings fund | |
| Pension savings insurance plan |
Chance of a higher return |
More information |
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| Pension savings fund | |
| Pension savings insurance plan |
If you have a pension savings fund with another company, you could transfer all your savings there to a pension savings fund with KBC Brussels. In that case, the savings balances are reinvested in the pension savings fund chosen by you. We don't charge you entry charges for pension savings you transfer to a scheme with us. Entry charges only apply to new deposits you make.
Please contact your branch to arrange this.
