What does responsible pension saving do for you?
What exactly does responsible pension saving entail?
When you put your money into a responsible pension savings fund, you invest in companies and countries that embrace the ESG themes of ‘Environment’, ‘Social’ and ‘Governance’. The fund comprises a mix of shares and bonds and is managed for you by professional fund managers.
Independent experts provide advice and conduct strict checks on compliance with these ESG themes. And the good news for you and the world is that responsible pension saving holds its own against conventional pension saving when it comes to long-term return.
You don't invest in:
- Controversial weapons, companies that seriously violate the principles of the UN Global Compact, countries with controversial regimes
- Agricultural crops or livestock, as we do not wish to be involved with food price speculation in any way
- Fossil fuels like oil, natural gas and coal (due to their excessive carbon emissions)
- Tobacco, conventional weapons, gambling, adult entertainment, etc.
Your pension savings fund:
- Promotes the integration of sustainability into the policy decisions of companies and countries by preferring companies and countries with better ESG ratings
- Promotes climate change mitigation by preferring companies and countries with a lower carbon intensity in order to achieve a predetermined carbon intensity target
- Supports sustainable development by including companies and countries that contribute towards achieving the UN Sustainable Development Goals
- Supports sustainable development by promoting the transition to a more sustainable world through investments in bonds to finance green and/or social projects
A specialised research team from KBC Asset Management monitors the situation, together with the Responsible Investing Advisory Board, which ensures that the socially responsible investing methodology is applied at all times.
When's the best time to start saving for retirement?
The sooner you start saving, the larger the potential amount built up for your retirement and, of course, the longer you can also benefit from tax relief.
If you start saving for your pension before your 55th birthday, you will have to pay a one-off final tax at a favourable rate of 8% on your 60th birthday. You then have the option of withdrawing your pension savings or continuing to save until the year in which you turn 64.
If you start saving for your pension on or after your 55th birthday, you pay a one-off final tax at the favourable rate of 8% after the contract has run for 10 years.
Tip: start responsible pension saving before you turn 55 and keep saving even after your 60th birthday. After the final tax has been paid, the amounts deposited are no longer taxed, although they can continue to qualify for tax relief.
How much tax relief can you get?
.If you pay taxes, you can choose between two maximum amounts:
- 990 euros, which could save you up to 297 euros in tax
- 1,270 euros, which could save you up to 317.50 euros in tax
If you save a lower amount towards your pension, you will not benefit to the maximum possible extent. With KBC Mobile and KBC Touch, you can quickly see how much still has to be saved to reach your chosen maximum amount.
How do you get started with responsible pension saving?
Responsible pension saving can be embarked upon in a number of ways and depends on your personal situation and investment profile.