Pension saving in 2023: two maximum tax-efficient amounts to choose from
Which maximum amount should you go for?
You can choose between two figures:
- 990 euros, which could save you up to 297 euros in tax
- 1,270 euros, which could save you up to 317.50 euros in tax
The default maximum amount is 990 euros per year. This gives you 30% tax relief on what you pay in, or a tax break of 297 euros per year. If you save less, you won't be able to claim the full amount of tax relief.
If you want to build up additional pension capital, you should opt for 1,270 euros per year as your maximum amount. This gives you 25% tax relief on what you pay in, or a tax break of 317.50 euros per year. Make sure to save at least 1 188 euros, otherwise you’ll get less tax relief than had you opted for 990 euros.
What you need to know if you opt for 1,270 euros
Be sure to save more than 1 188 euros
If you end up saving only 1 100 euros, for instance, you'll obtain a tax break of just 275 euros (25%), whereas you'd have received 297 euros (30%) if you’d gone for the lower tax-efficient figure of 990 euros.
You save more and pay a higher final tax charge
If you deposit 1,270 euros every year for pension-saving purposes, you should in principle come to a higher amount at the end, which means a higher final tax charge.
Tell us your choice every yearIf you opted for 1,270 euros last year, the lower maximum figure of 990 euros will apply again in 2023, unless you explicitly opt for the higher maximum figure of 1,270 euros.
How to increase the amount you save to 1,270 euros
If you have a pension savings fund with KBC Brussels, you can increase the amount you save as follows using KBC Brussels Mobile:
- Log in to KBC Brussels Mobile, tap ‘Investments’, then ‘Tax-advantaged savings and investments’, select your pension savings account and then tap ‘Increase your maximum tax-deductible amount’
- Read through the information
- Select 1,270 euros as the maximum amount
If you need any help with this, don’t hesitate to get in touch.