Why save for your pension?
As a self-employed person you are entitled to a small statutory pension based on the social security contributions you pay. Every quarter you accrue a portion of your pension rights.
Pensions for the self-employed are generally much lower than those of lifelong employees. On average, the statutory pension for the self-employed is about €900.
For that reason, there are options to supplement the statutory pension by means of additional pension pillars.
The earlier you start, the more you benefit from your pension savings.
- Your capital growth accelerates over time due to the effects of compound interest.
- Also, some types of pension savings offer a tax advantage.
Calculating your career
By 2030, the statutory retirement age in Belgium will be 67, with an additional career requirement of 45 working years or 14,040 working days.
A few useful elements to consider in your calculation:
- Early retirement is currently possible as of the age of 60, provided you have sufficient working years.
- If part of your career was in self-employment and part as a salaried employee, we call this a mixed career. In which case you receive a pension for your employment, but it can affect your statutory pension as a self-employed person.
- At mypension.be you will find an estimated pension date for normal and early retirement based on the days you have worked. This gives you a realistic picture of your career. Note, however, that this date may be affected by the actual course of your career, as it is an estimate.
As a self-employed person with a secondary occupation, you will not accrue pension entitlements. Your social contributions count as a solidarity contribution and do not entitle you to social benefits. You will, of course, receive your full pension through your main occupation.
Equalisation & regularisation
Your situation determines the elements of your career that are used to calculate your pension. If you work part-time, for example, your pension will be lower than if you worked full-time.
There are also methods to equalise certain periods of your life, so that they count towards your career and pension calculation:
- Regularisation of study years: you can redeem the years in which you obtained your degree. This means that they count towards your career, earning you several years of pension payment.
- Periods of work in which your employer made no pension contributions on your behalf, such as an IBO contract with proof of your employment.
- The government automatically equalises your National Service.
Formulas
There are several supplementary pension formulas for self-employed entrepreneurs, each with its own tax advantage.
These are the 3 most common:
- Voluntary Supplementary Pension for the Self-employed (VAPZ): suitable for all self-employed persons and with special conditions for secondary occupations
- Individual Pension Commitment (IPT): for self-employed company directors, through your company
- Pension Agreement for the Self-employed (POZ): for self-employed people who do not have a company
There are also pension formulas with tax advantages, not only for entrepreneurs but for private individuals: pension savings and long-term savings.
Finally, there are other forms of savings that do not offer tax advantages.
- Savings insurance: fixed guaranteed interest rate, lower risk (class 21)
- Investment insurance: non-guaranteed return, higher risk (class 23)
To be sure that you find a pension plan that suits you, the options can be easily combined.
