How can you build up your pension as an entrepreneur?
Why it’s important to think about your future now
As an entrepreneur, you make business decisions every day. But are you also making decisions for the future? Because, like it or not, there comes a time when you have to retire. With that in mind, what can you do now to gradually build up your pension and ensure you make the right choices at the right time? The sooner you start, the more freedom you’ll have further down the line.
Your retirement is like a puzzle with many pieces
When working out your retirement plan, you’ll soon find that it consists of several layers. When you fit all the pieces together, they create the financial security you need.
- The state retirement pension: This forms the basis, which you accrue by paying social security contributions. The amount that entrepreneurs build up is usually limited, so it’s important to supplement it.
- Supplementary pension as an entrepreneur: This is where you can make the greatest impact. Depending on your status, you can build up additional capital tax-efficiently either privately or through your company.
- Saving for the future on a personal basis: Pension saving and long-term saving plans are always taken out in your own name and are not related to your business.
- Assets you build up yourself: This could be savings, investments, real estate or the value of your business. It’s up to you to manage these assets.
As every entrepreneur has a different view of the future, pension solutions should always be tailored to your personal situation. Be sure to ask yourself these three key questions:
- Am I self-employed with or without a company structure?
- When do I want my business story to end?
- Do I want to prioritise security, growth or flexibility?
These choices determine the options you have, how much pension you can accrue and which aspects matter most at any given time.
Have assets of more than 250 000 euros (to invest)?
Arrange a meeting with KBC Private Banking. A private banker will then be appointed as your dedicated contact, supported by a team of specialists.
Your pension accrual is not a linear process
It’s a process that grows with your life and business. What is right for you today might need to be adjusted tomorrow when your company grows, your income changes or your personal life takes a turn.
By taking the time to review your situation every once in a while, you make sure that your pension plan remains aligned with who you are and where you are headed. A regular check-up also helps you take maximum advantage of tax opportunities and avoid unpleasant surprises later on.
