Withdrawing your pension savings early could set you back a serious amount
Pension saving is popular in Belgium not least because of the tidy tax break it offers. In 2025, that tax benefit could be as much as 337.50 euros. However, if you decide for whatever reason to withdraw your pension savings early, it’s worth knowing that you’ll get taxed at a higher rate. Read on to see the consequences of such early withdrawal and find out what you can do instead.
How much does it cost to withdraw your pension savings?
Let’s begin by taking a look at the most common pension savings scenario. Typically, a one-off final tax of 8% is deducted from your pension savings when you turn 60. After this final tax, you can withdraw your pension capital free of charge.
If you start saving for your pension after your 55th birthday, the standard minimum term you have to save for is 10 years. It is only after then that the 8% tax is deducted from your pension capital.
But what if you don't want to wait for that favourable rate of final tax because, for example, you unexpectedly have to make a major purchase or want to invest in a holiday home? The reason doesn't exactly matter to the tax authorities. When you withdraw savings early from a pension scheme, you have to pay taxes! And the tax rate could be as high as 33.31%. That’s something you should avoid.
What is the alternative to withdrawing pension savings early?
Fortunately, there is an alternative if you need to access money in the immediate future. Depending on your situation, a personal loan can turn out to be a much cheaper option. You can borrow up to 50 000 euros at a competitive rate, thus ensuring that your pension savings aren’t taxed more heavily.
