What is a Pension Agreement for the Self-employed (SPPA)?
The Pension Agreement for the Self-employed is a new option for building up a supplementary pension for self-employed persons without a company. You build up an extra pension capital with tax benefits in addition to the Voluntary Supplementary Pension Scheme for the Self-Employed (VSPSS).
Who's able to take out a SPPA?
The KBC-Life Pension Plan - SPPA is only aimed at self-employed persons without a company. This extra savings opportunity for self-employed persons who are sole traders or co-working spouses, for example, means that you can build up an extra pension with tax benefits.
What are the benefits of the KBC-Life Pension Plan - SPPA?
- You benefit from 30% tax relief on the contributions you pay provided that you do not exceed the 80% rule. This means that the total pension you build up (statutory and supplementary pension) must not exceed 80% of your income. For the purposes of tax relief, this amount is calculated annually in proportion to your average reference income for the last three years.
- You then enjoy a favourable rate of income tax of 10% when the final lump sum is paid out when you die or reach statutory retirement age.
Each contribution provides a guaranteed rate of interest so that your pension capital keeps on growing.
On top of your interest, you may also receive an annual variable, non-guaranteed bonus. This depends on movements in the financial markets and KBC Insurance's operating results.
Extra protection for your loved ones
Want to protect your partner and children in case you die prematurely? Take out supplementary death cover under the KBC-Life Pension Plan - SPPA. Your loved ones will then receive the agreed lump sum if you die.
How does this differ from a VSPSS?
As a self-employed person, you may well already be saving for a supplementary pension under a Voluntary Supplementary Pension Scheme for the Self-Employed. However, this solution has its limits since the contributions must not exceed a certain threshold of net taxable income.
A pension agreement for the self-employed lets you save a bit extra for a supplementary pension. Your colleagues in a company can already do so by joining an Individual Pension Scheme (IPT). Thanks to the SPPA, self-employed persons without a company are able to enjoy this advantage too.
Tip: optimise your VSPSS for tax purposes first!
The benefits of paying into a Voluntary Supplementary Pension Scheme for the Self-Employed can easily be twice as great as with a Pension Agreement for the Self-employed. So, get the maximum tax benefit from your VSPSS and then add the tax benefit of the SPPA.
Now you no longer need your accountant or insurance intermediary to get the maximum tax benefit from your VSPSS. You simply calculate it yourself in KBC Touch.
If you are interested in a Pension Agreement for the Self-employed or would like to know how to combine it with a VSPSS or any other supplementary pension savings scheme, please enter your contact details and we will contact you as soon as possible for a no-obligation consultation.
More things you need to know
- The KBC-Life Pension Plan - SPPA is a class 21-life insurance with guaranteed return, in which the investment risk is borne by the insurer.
- The KBC-Life Pension Plan - SPPA is governed by Belgian law.
- Future tax treatment can change and depends on your individual circumstances. Your intermediary will be glad to give you personalised advice in this respect.
- The guaranteed interest rate may change for future deposits. KBC Insurance determines the interest rate applying to your deposits during the term of the contract, based on the situation on the financial markets and/or changes to the statutory provisions. If the interest rate changes, KBC Insurance will inform you of this.
- Your intermediary is your first point of contact for any complaints you may have. If no agreement can be reached, you can contact KBC Complaints Management by post at Brusselsesteenweg 100, 3000 Leuven, by e-mail at firstname.lastname@example.org, by telephone on 0800 62 084 (free number) or + 32 78 15 20 45 (pay number), or by fax on + 32 16 86 30 38 If this does not result in an appropriate solution, you can contact the Insurance Ombudsman for the entire industry at de Meeûsplantsoen/Square de Meeûs 35, 1000 Brussels, email@example.com, www.ombudsman.as. This does not affect your legal rights.
The KBC-Life Pension Plan - SPPA is a product of KBC Insurance NV – Professor Roger Van
Overstraetenplein 2 – 3000 Leuven – Belgium VAT BE 0403.552.563 – RLP Leuven –
IBAN BE43 7300 0420 0601 – BIC KREDBEBB.
Company licensed by the National Bank of Belgium, de Berlaimontlaan 14, 1000 Brussels, Belgium, for all classes of insurance under code 0014 (Royal Decree of 4 July 1979, Belgian Official Gazette of 14 July 1979).
A member of the KBC Group