Social voluntary supplementary pension scheme for the self-employed (Social VSPSS)

KBC Life Pension Plan – Social VSPSS

Social voluntary supplementary pension scheme for the self-employed (Social VSPSS)

KBC Life Pension Plan – Social VSPSS

Why choose a KBC Life Pension Plan – Social VSPSS?

Building a supplementary pension by way of a social VSPSS (social voluntary supplementary pension scheme for the self-employed) gives you maximum protection and tax benefits. The VSPSS is called 'social' because 10% of the contributions you pay in automatically go to a solidarity fund. This gives you and your loved ones extra financial protection in case of illness and disability.

Warning! You may take out a KBC Life Pension Plan – Social VSPSS if you're signed up to Acerta or if you're a regulated salaried care provider.

Benefits

Get tax benefits

With a VSPSS, you can fully deduct your contributions from your tax liability (as a business expense). The maximum amount that's deductible is 15% higher in the case of a social VSPSS than with a regular VSPSS. Specifically: with a social VSPSS, the maximum contribution percentage is 9.40% whereas it's 'only' 8.17% with a regular VSPSS. A social VSPSS therefore lets you pay less tax and social security contributions and, at the same time, you can save more.
 

With a regular VSPSS, you can annually pay up to 8.17% of your earned income into the VSPSS, capped at 3,127.24 euros. The lower limit is set at a fixed amount of 100 euros. With a social VSPSS, the maximum contribution figure is 9.40%, with an absolute upper limit of 3,598.05 euros. The lower limit is fixed at 111.12 euros.

Build a pension with more protection

The social component is funded by deducting 10% from the contributions paid by you. With a KBC Home & Pension Plan, you get at least three additional types of cover (solidarity cover):

  • Funding of your supplementary pension should you become disabled for work due to an illness or accident.
  • Funding of your supplementary pension should you become physically disabled for work due to an illness or accident.
  • Compensation for loss of income in the form of an annuity should you become physically disabled following an illness or accident

You can find more information in the solidarity cover product fact sheet.

Although the extra cover provided by the social VSPSS is nice, it is still relatively limited. Solid guaranteed income insurance remains an absolute must for anyone who is self-employed.

Secure pension saving plan: guaranteed earnings

Up until the time of retirement, the contributions that are paid in generate a return and constitute the final pension capital. Under a KBC Life Pension Plan – VSPSS, the interest earned as at 1 October 2016 is 0.75% for all deposits and this is guaranteed until the contract is paid out.

If the economic situation and KBC Insurance’s earnings allow, this income from the KBC Life Pension Plan – VSPSS can be supplemented annually with a variable, non-guaranteed profit share

Entry charges

With a KBC Life Pension Plan – VSPSS, you only pay entry charges: there are no management fees. You also pay no exit charges when you take your state pension. Entry charges for a VSPSS.

Features

Legal form Guaranteed-rate life insurance
Payment Upon legal retirement or upon death prior to retirement
Tax-deductible contributions Annual tax deductible figure of up to 9.40% of the indexed net taxable earned income from three years previously

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