Everything you need to know about saving for your pension

Pricos, Pricos Defensive and KBC Life Pension Plan

Everything you need to know about saving for your pension

Pricos, Pricos Defensive and KBC Life Pension Plan

1 Where can I find information on my state retirement pension?

The federal government's National Pensions Office website www.mypension.be has full details of your state retirement pension (in Dutch, French or German). Since 2015, employees and the self-employed can find details of their entire career there. Log in using your eID or token you receive from the government to see your personal pension calculation.

2 How and how much can I save towards my pension?

The amount of pension savings that qualifies for tax relief is capped per year. This year (2015), 940 euros is the maximum amount that qualifies for the tax deduction. That amount will stay the same until the end of 2017.

Pricos and Pricos Defensive are pension savings funds1. By spreading your deposits (like doing so monthly), you buy in at both higher and lower prices. Not only that, but monthly deposits also bring more balance into your budget.

With an automatic savings facility, you can deposit as little as 10 euros a month into your Pricos or Pricos Defensive pension savings plan. You choose how much you want to pay in each time when you start saving for your pension with us. If you already have a contract with us and would like more help with it, just make an appointment with your branch.

You can make one-off additional deposits yourself using KBC Touch

KBC Life Pension Plan is a pension savings insurance plan2. Deposits can be made for as little as 24 euros a month.

If you already have a contract with us and wish to change it, just make an appointment with your branch.

3 How much are my pension savings worth now?

A. Mutual funds¹

Pricos and Pricos Defensive
These pension savings funds invest mainly in shares and bonds. Pricos has more shares than bonds in portfolio.Pricos Defensive, on the other hand, has more bonds than shares in portfolio.

The value (price) of each pension savings fund depends on things like the performance of the underlying shares and bonds in which the fund invests. You can get the latest price using our fund finder.

If you'd like to know how much of a pension savings pot you've currently built up, you can see this using KBC Touch by selecting 'Savings & investments' then 'Pension accumulation' under 'Menu'.

B. Guaranteed-interest (class 21) life insurance³

KBC Life Pension Plan
KBC Life Pension Plan is a pension savings insurance plan featuring a guaranteed rate of interest (class 21 insurance). If the interest rate changes, that only affects deposits as of that date.

You can get the latest value of your KBC Life Pension Plan under 'Menu' in the 'Savings & investments' section of KBC Touch.

 

4 What do I have to do to get tax relief on what I save?

Savings you make towards your pension qualify for tax relief3 of 30%. Every year in the spring, we send you a certificate (number 281.60) showing what you've paid in the previous calendar year. This is the amount you can include in your tax return.

5 Do I have to save every year?

You're not obliged to make a deposit every year. If there's a year when you're unable to save towards your retirement, that's not a problem and you can simply continue saving the year after that.

6 Who can get tax relief on pension savings?

Anyone aged 18 and over and under 65 who pays tax in Belgium can get tax relief on pension savings.

 If during one or more years you don't have to pay tax, you cannot get tax relief on pension savings during that time. This is often the case with people on a very low income or replacement income.

7 Can I save for my pension with KBC if I already have a pension savings plan elsewhere?

Two options

  • Either you keep your current pension savings plan with the other financial institution or insurance company and start a new one with us…
    …or
  • you transfer your pension savings to a plan with us. Transferring your current pension savings from one fund to another or from one pension savings insurance plan to another is tax free if you transfer all your savings.

How?

  • If you have a pension savings fund with another company, you could transfer all your savings there to a pension savings fund with us. If you do this, your savings are reinvested in the pension savings fund you choose with us (Pricos or Pricos Defensive). We don't charge you entry charges for pension savings you transfer to a scheme with us. Entry charges only apply to new deposits you make.
  • If you have a pension savings insurance plan with another company, you can transfer the full reserve under that plan to a KBC Life Pension Plan free of charge.
Note:
  • You can only open one pension savings account or take out one pension savings insurance plan per calendar year. If you already have a contract from previous years, you can also start a new one. Remember that your tax return can only include deposits you make into one pension savings account or pension savings insurance plan.
  • Switching from a pension savings fund to a pension savings insurance plan or vice versa is treated as stopping early with pension savings, which is heavily taxed. If you have pension savings elsewhere and would like to start saving for your retirement with us, it's better to leave your other savings where they are and start another contract with us.C

8 Am I allowed to have more than one pension savings account?

You're allowed to have several pension savings accounts or pension savings insurance plans with several different companies, though you can only open one account or plan per calendar year.

You can also only include deposits you make into one pension savings account or pension savings insurance plan in your tax return per calendar year. If you've made deposits into several pension savings funds or insurance plans, you choose which deposit or deposits to include in your tax return.

9 Can I still get tax relief on pension savings I've set aside after the final tax on pension savings has been deducted?

Yes. Once you reach 60 and the one-off final tax has been deducted, you can continue saving until the year in which you turn 64. You will still get tax relief on deposits made after your 60th birthday, but you don't have to pay any final tax any more.

10 What happens to my savings if I die?

Mutual fund¹

The pension savings account you opened as part of your Pricos or Pricos Defensive pension savings plan will be closed. Once your estate has been settled, your net capital (after deduction of the final tax) will be paid out to your heirs.

Guaranteed-interest life insurance²

Your KBC Life Pension Plan pays out to the beneficiary specified in your contract, who pays the final tax.

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1 A pension savings fund is an investment fund or fund, the common name for an undertaking for collective investment or UCI (which may or may not have a legal personality) that collectively gathers savings deposits and jointly manages them so investors invest directly in a diversified portfolio. Undertaking for collective investment is actually the umbrella term for investment funds, regardless of their legal status. It is that status which defines whether they are contractual UCIs (mutual funds) or incorporated UCIs (investment companies). A fund makes investing easy for investors. It is managed by specialists who track the market and take care of all the administrative aspects like collecting interest and dividends.
2 Guaranteed-interest life insurance is the generic term given to life insurance with a return that is guaranteed by the insurance company.
3 The tax treatment will depend on your individual circumstances and may change in the future.

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