Pension saving in 2019: what is the maximum amount?

Pension saving in 2019: what is the maximum amount?

Due to indexation, in 2019 you can choose between two maximum tax-deductible amounts: 980 euros or 1,260 euros. The maximum amount is 980 euros by default, with 30% tax relief. That gives you a tax credit of up to 294 euros on what you deposit in 2019.

If you want to save more than that, you can opt specifically* for 1,260 euros as your cap for tax purposes. You'll qualify for 25% tax relief with a tax credit of up to 315 euros on what you deposit in 2019.

* Each year, you must decide on which arrangement to use. If you opted for 1 230 euros in 2018, the lower maximum figure of 980 euros will apply as standard in 2019 (unless you explicitly opt for the higher figure of 1,260 euros).

Which cap to go for?

Both caps have their advantages. If you'd like to save more, then the higher cap is the right option for you. If your cap is set at 980 euros, you'll get a higher percentage of tax relief.

Want to keep your cap at 980 euros?

Then you don't need to do anything. 980 euros is your cap by default.

Or will you go for the 1,260 euros cap?

You're already saving for your retirement at KBC Brussels

You have a pension savings account at KBC Brussels

  1. Notify us of your choice to save the higher maximum amount of 1,260 euros in on of 3 ways:
  2. You can also pay up to the higher maximum amount via KBC Brussels Mobile, KBC Brussels Touch and KBC Brussels Invest. If you make your choice via KBC Brussels Mobile, you must immediately pay the full remaining amount.

You have a pension savings insurance plan at KBC Brussels

Be sure to do the following:

  1. First submit your decision at your KBC Brussels branch, your KBC Brussels Insurance agency or via KBC Brussels Live to go for the higher figure of 1,260 euros.
  2. The amounts are debited automatically each month from your chosen account, enabling you to save the entire maximum amount over the year. However, if you wish, you can also deposit the maximum amount in one go with KBC Brussels Mobile, KBC Brussels Touch or KBC Brussels Invest.

You're not saving for your retirement at KBC Brussels

Open a pension savings account

You can simply open a pension savings account with the default cap of 980 euros.

If you use KBC Brussels Mobile, then you can easily open a pension savings account with your smartphone and then submit your choice for 1,260 euros using the step-by-step instructions below.

If you don't use KBC Brussels Mobile, make an appointment online at your KBC Brussels branch or contact KBC Brussels Live to submit your choice.

Take out a pension savings insurance plan

If you prefer a pension savings insurance plan at KBC Brussels, be sure to do the following:

  1. First contact your KBC Brussels branch, your KBC Brussels Insurance agent or KBC Brussels Live to take out a new pension savings insurance plan and to submit your decision to go for the higher figure of 1,260 euros.
  2. The amounts are debited automatically each month from your chosen account, enabling you to save the entire maximum amount over the year. However, if you wish, you can also deposit the maximum amount in one go with KBC Brussels Mobile, KBC Brussels Touch or KBC Brussels Invest.

Submitting your choice for your pension savings account in KBC Brussels Mobile

How to choose your maximum amount in KBC Brussels Mobile

  1. Log in to KBC Brussels Mobile.

  2. Tap 'Investments' in the bottom menu, followed by ‘Tax-advantaged savings & investments’. Tap your pension savings account.

  3. Tap the information ball next to ‘Your current maximum tax-qualifying amount in 2019’. You will then see a screen with more information about the two caps for pension saving in 2019: 980 euros or 1,260 euros.

  4. Return to the previous screen and tap the blue button.

  5. Select the tax-deductible cap you want to save in 2019 and tap 'Next'.

  6. An information screen will appear explaining the product features. Read through this information and then tick the ‘I've read the product information' box. Tap ‘Next’.

  7. Select the amount that you want to deposit additionally and tap 'Sign' to confirm your deposit. You’ll then see a confirmation page stating that your deposit has been carried out.

Please note: If you've opted for the 1,260 euros cap, the only way you can deposit the amount (and that must be in one go) is in KBC Mobile.

Example: you've been depositing 81,67 euros per month to your pension savings account via standing order (or 980 euros annualised). By October, you'll have saved 816,7 euros. At that moment, you can still go for the 1,260 euros cap and deposit an additional 443,3 euros in one go to make up the difference.

What you need to know if you opt for 1,260 euros

Maximum amount for pension savings in 2018

Be sure to save more than 1 177 euros

You'll only be able to benefit from greater tax relief if you save more than 1 177 euros. If you end up saving only 1 100 euros, for instance, you'll obtain a tax credit of just 275 euros (25%), whereas you'd have received 294 euros (30%) at the lower cap of 980 euros.

You save more and pay a higher final tax charge

If you deposit 1,260 euros every year for pension-saving purposes, then you should in principle come to a higher amount at the end, which means a higher final tax charge.

Each year, you'll need to submit your choice again

Each year, you must decide on which arrangement to use. If you opted for 1 230 euros in 2018, the lower maximum figure of 980 euros will apply as standard in 2019 (unless you explicitly opt for the higher figure of 1,260 euros).

To learn more about saving for your pension, go to ‘Everything you need to know about pension saving at KBC Brussels’.

When can you start saving for your pension?

* The tax treatment will depend on your individual circumstances and may change in the future.

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