Extra pension capital for your retirement
To continue your current standard of living during retirement, we would advise you to start saving for supplementary pension as soon as possible.
Less tax and social security contributions
The premiums are fully tax-deductible as professional expenses, offering you a tax advantage in the highest income bracket.
A VSPSS offers you security, as you receive guaranteed interest income on all premiums paid.
What is a VSPSS?
A VSPSS, or Voluntary Supplementary Pension Scheme for the Self-Employed, is the most tax-advantageous way for the self-employed to accumulate supplementary pension. A VSPSS helps you increase your purchasing power during your retirement years.
The KBC Life Pension Plan – VSPSS also offers you a sufficient degree of security thanks to a guaranteed return, which can be further supplemented with a variable profit share. Not convinced yet? Then bear in mind that a voluntary supplementary pension will already get you a nice bit of tax relief now, and you’ll later pay only a small tax charge on the capital you accumulate.
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.
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.
Maximise your tax benefits every year in KBC Touch
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 is currently 0.50% 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.
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. You can find the entry charges on the KBC Life Pension Plan – VSPSS product fact sheet.
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|
If you're signed up to Acerta, you can opt for a social VSPSS, which allows you to deduct 15% more than with a ‘standard’ VSPSS and gives you better protection, including in the event of incapacity for work, disability, and maternity leave.
If you are interested in a VSPSS or would like to know how to combine it with an individual pension scheme, a pension agreement for the self-employed 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.