Pension saving in 2018: what is the maximum amount?

Pension saving in 2018: what is the maximum amount?

You can now choose 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.

Please note: in 2018, you can make additional payments until 4:59 p.m. on 31 December.

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?

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 1,230 euros in on of 3 ways:

Once you've made your choice, you can pay the remaining amount in one go in KBC Brussels Mobile, KBC Brussels Touch or KBC Brussels Invest*. You'll then be sure to obtain the most tax relief.

* In 2018, you can make additional payments until 4:59 p.m. on 31 December.

You have a pension savings insurance plan at KBC Brussels

Be sure to do the following:

  1. 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 1,230 euros.
  2. Then start saving up to your maximum amount using 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 960 euros.

If you use KBC Brussels Mobile, then you can easily open a pension savings account with your smartphone and then submit your choice for 1,230 euros using the step-by-step instructions below.

If you don't use KBC Brussels Mobile, make an appointment online at your KBC Brussels branch or contact KBC Brussels Live to submit your choice.

Once you've made your choice, you can pay the remaining amount in one go in KBC Brussels Mobile, KBC Brussels Touch or KBC Brussels Invest. You'll then be sure to obtain the most tax relief.

* In 2018, you can make additional payments until 4:59 p.m. on 31 December.

Take out a pension savings insurance plan

If you prefer a pension savings insurance plan at KBC Brussels, be sure to do the following:

  1. 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 1,230 euros.
  2. Then start saving up to your maximum amount using KBC Brussels Mobile, KBC Brussels Touch or KBC Brussels Invest.

Investing in the fund is purely on your own initiative, without any investment advice from KBC Bank. KBC Bank accordingly does not assess whether the fund is a suitable investment for you and is not able to fully check whether you belong to the target market of the fund. Would you like to receive more information about how to obtain KBC Bank's investment advice, or are you interested in a pension savings insurance plan? Then contact your branch or KBC Brussels Live.

Submitting your choice for your pension savings account in KBC Brussels Mobile

How to choose your maximum amount 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

Maximum amount for pension savings in 2018

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 next year, 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 Brussels’.

When can you start saving for your pension?

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

Investing in the fund is purely on your own initiative, without any investment advice from KBC Bank. KBC Bank accordingly does not assess whether the fund is a suitable investment for you and is not able to fully check whether you belong to the target market of the fund. Would you like to receive more information about how to obtain KBC Bank's investment advice, or are you interested in a pension savings insurance plan? Then contact your branch or KBC Brussels Live.

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