- 31/12/2024

Pension savings after the age of 50?

2 min

Build up capital and benefit from a tax reduction

You can start saving for your pension in a tax-efficient way, even after the age of 50. Every contribution you make, no matter how small, will add to your pension capital. Additionally, you will benefit from a tax advantage of 25% or 30% on your payments, making it a worthwhile investment in your future.

Start saving before your 55th birthday

Whether you start saving for your pension before or after the age of 50, it's always best to start before you turn 55. Why? Because the one-off final tax will be withheld on your 60th birthday and you will no longer have to pay this tax on any subsequent payments.

Early withdrawal

If you withdraw your savings before the one-off final tax is deducted, you will be subject to a higher tax rate. This rate can be as high as 33%, and in some cases, it may be further increased by additional municipal taxes. It is therefore advisable to avoid withdrawing your savings prematurely. The tax rate also depends on individual circumstances and is subject to changes in tax legislation.

54 - a key birthday

In the year you turn 54, you will need to make a decision about how you want to continue making tax-efficient savings after your 55th birthday. For example, you will need to consider whether you want to maximize your savings amount.

Find out why the choice you make at age 54 is so important.

Long-term savings as an alternative after 60

Long term savings as alternative

You can also set aside money after your 60th birthday. With pension savings, you usually get a tax reduction until the year you turn 64. With a long-term savings contract, you can start saving until the day before your 65th birthday and continue saving for many years – right up to the age of 99 if you want! You just need to make sure that your contract allows it and that you are still entitled to a tax reduction.