Pension saving in 2020: choice between 2 tax limits

Pension saving in 2020: choice between 2 tax limits

You can choose between two maximum tax-deductible amounts under a pension savings scheme in 2020, i.e.:

  • A maximum of 990 euros: that gives you a tax relief of 30%, which would save you 297 euros in tax.

  • A maximum of 1,270 euros: that gives you a tax relief of 25%, which would save you 317.5 euros in tax.

Which cap to go for?

The maximum figure is  990 euros by default. If you want to save more than that, you can opt specifically for 1,270 euros* as your maximum.

* Each year, you must decide on which arrangement to use. If you opted for 1,260 euros in 2019, the lower maximum figure of 990 euros will apply as standard in 2020 (unless you explicitly opt for the higher figure of 1,270 euros).

Want to keep your cap at 990 euros?

You're already saving for your retirement at KBC Brussels

Then you don't need to do anything. 990 euros is your cap by default.

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 990 euros.

Take out a pension savings insurance plan

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 1,270 euros.

Good to know: 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.

Or will you go for the 1,270 euros cap?

You're already saving for your retirement at KBC Brussels

You have a pension savings account at KBC Brussels

Notify us of your choice to save the higher maximum amount of 1,270 euros in on of 3 ways:

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

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 1,270 euros.

Good to know: 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 990 euros.

Take out a pension savings insurance plan

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 1,270 euros.

Good to know: 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.

How to choose your maximum amount in KBC Brussels Mobile

  1. Log in to KBC Brussels Mobile. Tap Investments > Tax-advantaged savings & investments. Tap your pension savings account.

  2. Tap the information ball next to Your current maximum tax-qualifying amount in 2020. You will then see a screen with more information about the two caps for pension saving in 2020: 990 euros or 1,270 euros.

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

  4. Select the tax-deductible cap you want to save in 2020 and tap Next.
    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.

  5. 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 1,270 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 990 euros annualised). By October, you'll have saved 816,7 euros. At that moment, you can still go for the 1,270 euros cap and deposit an additional 443,3 euros in one go to make up the difference.

You invest in the fund on your own initiative without any investment advice from KBC Bank. That means we don’t assess whether the investment is suited to you and are unable to fully check whether you belong to the product’s target market. Contact your KBC Brussels branch or KBC Brussels Live to learn more about getting investment advice from KBC Bank.

What you need to know if you opt for 1,270 euros

Maximum amount for pension savings in 2018

1. Be sure to save more than 1,188 euros

You'll only be able to benefit from greater tax relief if you save more than 1,188 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 297 euros (30%) at the lower cap of 990 euros.

2. You save more and pay a higher final tax charge

If you deposit 1,270 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.

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

Each year, you must decide on which arrangement to use. If you opted for 1,260 euros in 2019, the lower maximum figure of 990 euros will apply as standard in 2020 (unless you explicitly opt for the higher figure of 1,270 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?

Discover more about retirement savings

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

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