Pension saving in 2018: what is the maximum amount?

Pension saving in 2018: what is the maximum amount?

If you have a pension savings account at KBC Brussels, you can elect between two maximum tax-deductible amounts: 960 euros or 1,230 euros. The maximum amount is 960 euros by default, with 30%* tax relief. That gives you a tax credit of up to 288 euros.

If you want to save more than that, you can opt specifically for 1,230 euros as your cap for tax purposes. You'll qualify for 25%* tax relief with a tax credit of up to 307.50 euros on what you save in 2018.

You can submit the maximum amount (cap) you want to go for via KBC Brussels Mobile, at your KBC Brussels branch or via KBC Brussels Live.

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 960 euros, you'll get a higher percentage of tax relief.

Want to keep your cap at 960 euros?

Then you don't need to do anything. 960 euros is your cap by default.

Or will you go for the 1,230 euros cap?

Pension saving in 2018

At KBC Brussels, you can easily let us know your choice to increase your cap to 1,230 euros*. 

  • If you have a pension savings account with us and are using the KBC Brussels Mobile app, you can follow the step-by-step instructions below to notify us.

  • If you don't have one yet, you can first open a pension savings account with the default cap of 960 euros. Then submit your preference for the higher cap of 1,230 euros via KBC Brussels Mobile using the step-by-step instructions below.

  • If you don't use the KBC Brussels Mobile app or if you have a product other than a pension savings account, make an appointment at your KBC Brussels branch online or contact KBC Brussels Live to submit your choice. Then you can easily make additional deposits via KBC Brussels Touch or KBC Brussels Invest.


*If you have a pension savings account at KBC Brussels, you'll be able to choose between two maximum tax-deductible amounts as of November this year: 960 euros or 1,230 euros. You can then submit your choice at your KBC Brussels branch, insurance agent, or via KBC Brussels Live.

Submit your choice 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 2018’. You will then see a screen with more information about the two caps for pension saving in 2018: 960 euros or 1,230 euros.

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

  5. Select the tax-deductible cap* you want to save in 2018 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 1,230 euros cap, you'll need to deposit the amount required to reach the cap in one go via KBC Brussels Mobile. Then you'll be sure to obtain the most tax relief.

Example: you've been depositing 80 euros per month to your pension savings account via standing order (or 960 euros annualised). By October, you'll have saved 800 euros. At that moment, you can still go for the 1,230 euros cap and deposit an additional 430 euros in one go to make up the difference.
 

What you need to know if you opt for 1,230 euros

Be sure to save more than 1 152 euros

You'll only be able to benefit from greater tax relief if you save more than 1 152 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 288 euros (30%) at the lower cap of 960 euros.

You save more and pay a higher final tax charge

If you deposit 1,230 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'll need to decide on which cap you'll apply that year. If you opt for 1,230 euros in 2018, the lower (default) cap will apply in 2019, unless you specifically elect the higher cap again.

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

When can you start saving for your pension?

That's easy: you can already start today. What do you need? Your smartphone and the KBC Brussels Mobile app and you're all set to go.

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

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