Voluntary Supplementary Pension Scheme for the Self-Employed (VSPSS)

KBC Life Pension Plan – VSPSS

Voluntary Supplementary Pension Scheme for the Self-Employed (VSPSS)

KBC Life Pension Plan – VSPSS

Why choose a KBC Life Pension Plan – VSPSS?

The self-employed generally receive a lower state retirement pension than salaried employees do. Not keen to comprise on your current living standard? With a KBC Life Pension Plan – VSPSS you can already make a start on building up an extra pension capital for later in life. This life insurance plan offers you sufficient peace of mind with its a guaranteed return, on top of which you may get a variable profit share. Not yet convinced? Then bear in mind that a voluntary supplementary pension will already now get you a nice bit of tax relief and you'll later pay only a small tax charge on the capital you build up. 

If you're signed up to Acerta, you can opt for a social VSPSS, which allows you to deduct 15% more than with a 'regular' VSPSS and gives you better protection, such as if you're disabled for work.

The benefits of a 'regular' VSPSS

Lower social security contributions and tax

  • The contributions paid are fully deductible as business expenses. Each year, you can pay up to 8.17% of your income from three years previously into the VSPSS,enabling you to enjoy tax savings in your highest income tax band
  • The tax relief gives you lower taxable income and this also reduces the social security contributions you're liable for.
  • When the VSPSS is paid out, you benefit from a favourable final tax charge on the capital you've accumulated. Thus, the capital (including the profit share) is subject to a charge of 3.55% for national health and disability insurance (NIHDI) purposes plus a solidarity contribution of a maximum of 2%.The capital sum accumulated by way of profit sharing is not taxed further. The other portion of the payout qualifies for spread taxation as earned income according to the system of notional interest.
  • There is absolutely no premium tax due.

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’s expiry date.

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.

Give your loved ones extra protection for by adding death cover

You can incorporate additional death cover into your KBC Life Pension Plan – VSPSS contract, protecting your loved ones. If you should die early, they receive the contract capital sum.

What a VSPSS costs you

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 of a Life Pension Plan – VSPSS

Legal form Guaranteed-rate life insurance
VSPSS payout Upon legal retirement or upon death prior to retirement
Tax relief on VSPSS premiums Annual tax deductible figure of up to 8.17% of the indexed net taxable earned income from three years previously

More info

  • KBC Life Pension Plan – VSPSS product fact sheet

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