With pension savings, you can top up your state pension. You're also entitled to a tax advantage amounting up to 30% of the sum saved1.
You can choose from two specific solutions
- A pension savings fund (collective investment fund) or
- A pension savings insurance plan
1. Return on a pension savings fund
The return on a pension savings fund2 mainly depends on changes in the shares and bonds in which this type of fund invests. The fund manager decides which shares and bonds to buy and which to sell – within a legally defined framework. The ratio of shares to bonds in the fund often determines the return (as well as the volatility).
Other factors involved include the
- Time at which a fund manager decides to buy or sell certain shares or bonds
- Management fee
- Entry charges
When comparing different forms of pension savings don't just compare returns. It's not a good idea to base your decision on the return alone. Before you decide, you should also compare costs.
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 to another fund
If you have a pension savings fund with another company, you could transfer all your savings there to a pension savings fund with KBC. In that case, the savings balances are reinvested in the pension savings fund chosen by you. 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.
Please contact your branch to arrange this.
2. Return on a pension savings insurance plan
Pension savings insurance plans3 are a safe option with guaranteed interest income. The return on a pension savings insurance plan is mainly determined by the interest income plus the variable, unguaranteed profit-sharing rate, and to a lesser extent by the charges. These vary from company to company. The higher the total return, the more your plan yields.
Other factors determining the return on a pension savings insurance plan
- The number of years for which the interest rate is guaranteed for each deposit
- The management fees charged for the reserves saved
- The entry charges
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1 The tax treatment will depend on your individual circumstances and may change in the future.
2 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. Depending on their legal status, a distinction is made between UCIs with a contractual structure (investment funds) and UCIs with a separate legal personality (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.
3 Guaranteed-interest life insurance (class 21) The pension savings insurance plan is covered by the Belgian deposit-protection scheme for guaranteed-interest life insurance (class 21).