Pension saving in 2023: two maximum tax-efficient amounts to choose from

Pension saving enables you to set a sum of money aside each year for your retirement. Depending on the maximum tax-efficient amount you choose, you could claim up to 30% tax relief on what you’ve paid in when submitting your tax return the following year. So, if you want to snag an attractive tax break, be sure to check which amount is most beneficial to your situation.

Which maximum amount should you go for?

You can choose between two figures:

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

The default maximum amount is 990 euros per year. This gives you 30% tax relief on what you pay in, or a tax break of 297 euros per year. If you save less, you won't be able to claim the full amount of tax relief.

If you want to build up additional pension capital, you should opt for 1,270 euros per year as your maximum amount. This gives you 25% tax relief on what you pay in, or a tax break of 317.50 euros per year. Make sure to save at least 1 188 euros, otherwise you’ll get less tax relief than had you opted for 990 euros.

What you need to know if you opt for 1,270 euros

Be sure to save more than 1 188 euros
If you end up saving only 1 100 euros, for instance, you'll obtain a tax break of just 275 euros (25%), whereas you'd have received 297 euros (30%) if you’d gone for the lower tax-efficient figure of 990 euros.

You save more and pay a higher final tax charge
If you deposit 1,270 euros every year for pension-saving purposes, you should in principle come to a higher amount at the end, which means a higher final tax charge.

Tell us your choice every yearIf you opted for 1,270 euros last year, the lower maximum figure of 990 euros will apply again in 2023, unless you explicitly opt for the higher maximum figure of 1,270 euros.

How to increase the amount you save to 1,270 euros

If you have a pension savings fund with KBC, you can increase the amount you save as follows using KBC Mobile:

Log in to KBC Mobile, tap ‘Investments’, then ‘Tax-advantaged savings and investments’, select your pension savings account and then tap ‘Increase your maximum tax-deductible amount’
Read through the information
Select 1,270 euros as the maximum amount

If you need any help with this, don’t hesitate to get in touch.

If you have a pension savings insurance plan with KBC, you can inform us of your choice at your KBC branch, KBC insurance agent or through KBC Live.

All the benefits of retirement savings at a glance