About 62% of the employees and independents are saving for their pension (Source: Febelfin). They obviously have good reasons to do so! What are the 3 most important reasons to start saving for your pension as early as possible?
1. The state pension isn't enough
All working Belgians are entitled to a state pension when the time comes. This pension amounts to about 60% of your final salary. Have no illusions: your state pension won't be enough to maintain your current lifestyle. By taking out a personal pension plan, you can supplement this modest pension. So you can enjoy your retirement without having to cut back too much financially.
The longer you save for, the bigger your pension pot should be. That's why we recommend you start saving for your pension as early as possible. If saving for your pension isn't a priority for you, you need to reconsider.
|Civil servants||2,614 euros|
Source employees and independents: Jaarlijkse statistiek van de
Rijksdienst voor Pensioenen (RVP) 2015
Source civil servants: Jaarlijkse statistiek van de Pensioendienst voor de Overheidssector (PDOS) 2014
2. Tax relief
The government strongly backs personal pension plans. Taxpayers who save for their pension get tax relief up to 30%1. In other words: you can claim back from the taxman as much as 30% of what you've paid into your pension.
Starting in 2019, you yourself can choose the maximum pension savings amount. You can elect to go for 1,260 euros, which gives you 25% tax relief. Or stick with the 980 euros figure, which gives you 30% relief on the amount deposited.
Depending on the chosen maximum, you can claim a tax credit of up to
315 euros or up to
Besides tax relief, there's another great surprise in store when you save for your pension: the return. Pension savings insurance gives you a guaranteed return, unlike with a pension savings fund.
1 The tax treatment depends on each saver's personal
situation and may change in the future.
2 This simulation is for illustrative purposes only and provides no guarantee whatsoever of future results.
3 In 2019, the maximum tax-deductible amount for pension savings is 980 euros.