Our expert’s advice for your pension
5 min
As a self-employed individual, your state pension may not be sufficient for your needs. Our experts can help you not only build the capital you need, but gain a significant tax benefit while protecting you, your loved ones and your business from the financial consequences of death or disability.
Will your state pension allow you to maintain your standard of living and that of your loved ones after retirement? How can you gain a significant tax advantage in the short term? What would happen if you had to stop working due to an accident or illness? What would happen to your debts if you were to pass away suddenly? Morna Van der Pijl, an expert in providing insurance to entrepreneurs with over 20 years of experience, has valuable advice to offer. And she can provide you with something even more precious: peace of mind.
Why seek expert advice?
“A tax benefit that allows you to benefit from your pension savings in the short term”
Pension, disability and death
Morna Van der Pijl: “We offer various solutions that allow you to do three things: build a pension pot in a tax-efficient way, maintain your standard of living if you become unable to work, and protect your family and business in the event of your death. Of course, you could address these issues separately, but it’s in your best interest to combine our solutions, because they’re linked. You’ll get the most benefit, especially from a tax perspective. As an expert, I’ll help you make the right choices that best suit your situation and needs.”
Customised solutions
“When it comes to pensions and death or disability insurance, it’s essential to choose the solution that best fits your specific situation. Tax rules vary depending on whether you’re a self-employed individual or a company, and on which sector you work in, particularly if you’re in the medical field. Your needs change throughout your career and so does your family situation. Everyone has their own level of risk tolerance, and you may have plans to buy a property.”
More than just insurance
“You don’t have to wait years to benefit from your pension savings. Paying your contributions year after year also allows you to reduce your annual tax bill, thanks to tax benefits based on your status. But the possibilities don’t stop there: subject to certain conditions, you can use the capital from a pension savings plan to buy a property. This can be done via an advance on your pension pot, or via a loan that you’ll repay with your pension capital. It’s an effective way to take money out of your company and benefit from it today.”
Decisions to make
“I’ll help you choose the solution that best fits your situation”
What do you need?
“It’s essential to choose the right solution for the right situation. As an expert, I’ll review various criteria: are you married, cohabiting or single? Do you have children? How old are they? Are you a self-employed individual or do you run a company? What stage is your business at? Together, we’ll also discuss passing on your assets, the income you’d be entitled to if you became unable to work and a possible income that would allow your business to continue temporarily despite your absence.”
What’s the optimal contribution?
“How do you determine the contribution you’ll pay? The answer depends on how much you can afford, of course, but also on taxation. And each of our solutions has its specific features. We’ll calculate an upper limit for contributions based on the information we have. Your accountant will take it into account, as well as your profits, to suggest how much you should pay.”
Which solution to choose?
“The range of insurance-based second-pillar pension solutions has become complex: there are various branch 21 solutions with protected capital, and also branch 23 solutions. My role as an expert is to present the pros and cons of each solution. Similarly, there are many possible types of cover that will protect you, your family and your business from the financial consequences of disability or death. My mission is to help you get a clear view so that you can make an informed decision.”
Our expert’s three tips
“Let’s discuss it at your home, in branch or via video call!”
Check all possibilities
“My first tip? Combine your insurance policies: you’ll probably save money. You could take out an insurance-based pension plan and death and disability insurance separately. But there’s not much point in doing that. Check all possibilities and the tax consequences of your choices. Of course, I’ll support you with your thought process and help you explore the issues.”
Start early
“My second tip is to start saving as soon as possible. You’ll benefit in several ways. Your pension pot will be larger in the end, of course, but you’ll also benefit from a significant tax advantage for each contribution you make and you can take advantage of potential property investment opportunities. Moreover, when it comes to death and disability insurance, the younger you are, the lower the premium will be. Your pension may seem far away, but the benefits will be felt long before you retire.”
Seek expert advice
“And if you only remember one of my tips, it’s this one: get some help! Talk to your bank advisor. They’ll answer your initial questions and put us in touch. As an expert, I often visit clients at their home, or I can meet them in branch or via video call. Your advisor knows your business, your plans and your history. Together, we’ll find the best solution. And they can also support you year after year to ensure that your pension and your death and disability insurance remain as tax-efficient as possible.”