Pensioensparen

With a pension savings life insurance policy, you build up additional pension capital within the third pillar, and for that you enjoy a tax advantage in personal income tax every year. You decide for yourself how much you pay in, up to an annual tax ceiling. Unlike long term savings, the premium you can pay in is not income dependent: even on a modest income you make full use of the tax advantage. That makes pension savings, for most people, the first and most tax advantageous step. Only afterwards, if you still have savings capacity left, do you supplement it with long term savings.

Pension savings has two regimes, each with its own annual ceiling and its own rate. In the ordinary regime you enjoy a 30% tax advantage on your premium, up to the basic ceiling. If you want to save more, you can opt for the increased ceiling, but then a rate of 25% instead of 30% applies to your entire premium. So you save more, but possibly at a lower deduction. Just above the basic ceiling your net advantage can even turn out lower than if you had stayed at the basic ceiling. Opting for the increased ceiling only really pays off once you pay in clearly more. You make that choice deliberately, and it is worth calculating it through together beforehand.

Pension savings is open to almost any individual with a professional income. Because the premium is not income dependent, it is just as accessible to someone who is only starting to work as to someone who already has a higher income. And the earlier you start, the longer your capital can grow.

Pension savings and long term savings are both third pillar formulas, and they complement each other nicely. Pension savings is just a bit more attractive in tax terms: a higher rate (up to 30%) and no premium tax. Hence our rule of thumb: start a pension savings plan first, and only afterwards, if you still have savings capacity left, supplement your tax basket with long term savings. Through long term savings you can often pay in more than double what is possible in pension savings, which makes it a strong second step.

A good pension savings plan is more than simply paying in a premium. A few points of attention that make the difference:

The premium gives you a tax advantage in personal income tax: 30% in the ordinary regime, or 25% if you opt for the increased ceiling, in each case still to be increased by municipal taxes. Unlike long term savings, no premium tax is withheld on your premium. At the end of the road your capital is taxed once through the so called advance levy of 8%, which the government collects at the end of the month in which you turn 60, if you took out the contract before the age of 55. The good news: premiums you pay in after that levy continue to enjoy the tax advantage and are no longer taxed. Continuing to save after your 60th therefore remains attractive.