Comparison of tax-efficient forms of saving

Tax-efficient saving refers to pension saving and long-term saving. In both cases, you can get a tidy bit of tax relief on the amount you save. It's also possible to combine both forms of tax-efficient saving.

If you have sufficient scope, you can increase your tax relief in this way. Whether tax benefits are possible and how much they are, depends on your personal situation.

 

Placeholder label

fiscaal sparen vergelijken

Pension saving or long-term saving: what are the differences?

Both pension saving and long-term saving are intended to build a nest egg for later
in life. Even though you may not be thinking about that for some time to come, you may have wondered what the differences are between the two. We're happy to list them for you.

Pension saving:

If you start pension saving from the moment you start earning an income, you'll be able to save for many years and build up some savings to fall back on when you retire.

 The amount that qualifies for tax relief each year is a predetermined maximum. The maximum tax-deductible amount is determined annually by the government. It's based on the amount you've saved.

You can choose between two fixed maximum amounts. If you would like to know more about these amounts and the possible tax benefits that may apply to them,  be sure to check out our info on pension saving in 2022.

Your tax relief could amount to 30%. You can choose between a pension saving fund or a pension saving insurance plan.  However, in order to qualify for tax relief, you have to pay taxes.

If you have benefited from tax relief, you'll pay a final tax, which is usually when you turn 60. The final tax is 8%.

The return on pension saving varies depending on which type you choose. Depending on the product chosen, pension saving may entail a greater or lesser risk.

Long-term saving:

With long-term saving, you may also qualify for tax relief for years to come.

With long-term saving, the amount eligible for tax relief depends on your income and the available scope, but always with a maximum of 2,350 euros per year. The government determines this maximum.

In certain cases, you can combine long-term saving with your home loan. Whether this is possible and how, depends on when your home loan started and your tax residence on 1 January.

You can save for the long term through a savings-linked insurance or an investment-type insurance product.

Your tax relief could amount to 30% depending on your personal situation. The tax treatment depends on your individual circumstances and on legislation, both of which may change in the future.

If you have benefited from tax relief, you'll pay a final tax, which is usually levied at the age of 60. It amounts to 10%.

The return on long-term saving varies, depending on which type you choose. Depending on the product chosen, long-term saving may entail a greater or lesser risk.

Combining pension saving and long-term saving

You can combine both forms of tax-efficient saving.

Both pension saving and long-term saving may be taken out in your own name. This way, married couples who each save for their pension as well as for the long term can benefit from a tidy tax break. Of course, this again depends on your personal situation.

Learn more about pension saving
Learn more about long-term saving