Depositing into an IPT, a good idea?

The answer to this question can be very extensive, but we can also summarise it briefly in 7 steps:

1. An IPT is an advantageous way to save for pension via a company. 2. For every 100 euro that a company pays into pension via an IPT:

1. this costs the company a net 80,00 euro after deduction of corporate income tax 2. and the beneficiary receives a net 78,90 euro at retirement 3. and on top of that comes the investment return

4. As a result, money moves from the company to the private sphere, in a ratio of almost 1 to 1 (78,90 / 80), which is unique to an IPT. 5. The biggest disadvantage of an IPT is that you have to wait until pension age to receive the money. Unless the IPT is used to finance real estate.

- Cost after corporate income tax: [ 100 premium, tax 4,4% included x correction for corporate income tax ( 1, say 20%) ] = 80,00 euro net cost for the company - Net to be received (*): [ 100 premium of which we first determine how much of it ends up in the contract / first we correct for tax (1 + 4,4% tax) ] x then we correct for the management costs on the premium ( 1, say e.g. 3% charges) x on payment the correction for the final taxation at retirement follows ( 1 to 15.08% cumulative final taxation in a normal situation)

= 78,90 net into the private account at retirement

(*) In the above we do not even take into account the investment return that is realised over the course of the contract! The above calculation is indicative, on the basis of the usual taxation and costs.