What is long-term saving?
- Get up to 735 euros in tax relief
- Start saving from as little as 10 euros a month
- Build up additional savings to augment your pension savings
Why long-term saving?
If you’d like to maintain a decent standard of living further down the line, relying solely on your state retirement pension is often not enough. Long-term saving gives you the opportunity to build up a reserve for later and to benefit from tax relief of up to 735 euros on the amount you save each year.
If you already have a pension savings plan, you can usually combine it, meaning you build up an additional reserve and benefit from more tax relief.
The younger you start the better, but you have until you turn 64 to start long-term saving. Important: if you’re 54 or older, save your maximum amount in the first year you start saving.
If you’re still paying off a home loan, the tax relief depends on where you live and whether your home loan was taken out before 2016.
Flanders
If you took out your home loan before 2016, you’ll only earn tax relief through long-term saving if you’re left with enough scope to do so from a tax-efficient perspective.
If you took out your home loan in or after 2016, you can claim tax relief through long-term saving even if you’re still paying off that loan.
Wallonia
If you took out your home loan before 2016, you’ll only earn tax relief through long-term saving if you’re left with enough scope to do so from a tax-efficient perspective.
If you took out your home loan in or after 2016, you can claim tax relief through long-term saving even if you’re still paying off that loan.
Brussels
If you took out your home loan before 2017, you’ll only earn tax relief through long-term saving if you’re left with enough scope to do so from a tax-efficient perspective.
If you took out your home loan in or after 2017, you can claim tax relief through long-term saving even if you’re still paying off that loan.
How do you go about long-term saving?
You save by means of an insurance product. There are two possibilities:
| Savings-linked insurance | Investment-type insurance | |
| Earnings | Fixed, sometimes with a profit share | Variable, chance of a higher return |
| Risk | Limited, you know what to expect | Higher, the price may fluctuate |
| Who’s it for? | Those looking for security | Those aiming for a higher return |
This overview is indicative and does not constitute personal advice.
How much can you set aside by engaging in long-term saving?
You choose how much to save based on your income and what is possible tax-wise. The maximum amount eligible for tax relief is 2,450 euros/year.
These general rules give you an idea of what’s possible. If you earn up to roughly 3 500 euros gross a month, around 75 euros a month is often in line with your situation. If you earn more, you can usually save up to the maximum amount eligible for tax relief (approximately 204 euros a month). If you’d rather work out the exact figure for your situation, you can get started using a clear formula and your tax assessment notice.
What costs are involved in long-term saving?
- Savings-linked insurance product: entry charges, a statutory insurance premium tax and potentially exit charge (if the money is withdrawn early).
- Investment-type insurance product: management fees, but no exit charges.
- Final tax: 10% when you turn 60 (or after 10 years if the contract was taken out when you were 55 or older).
