- 31/12/2024

What happens when you turn 54?

4 min

The one-off final tax in the year you turn 60

It is in your interest to open a pension savings or long-term savings account before your 55th birthday:

• each year, you can set aside an amount that is capped. You will need to save for several years to build up capital. So, the earlier you start, the better.
• the one-off final tax is withheld in the year you turn 60.
• you do not pay this one-off final tax on payments you make after you turn 60. However, these payments still qualify for the annual tax relief.

Do you want to start saving after your 55th birthday? This is less advantageous:

• As your payments may not exceed the annual ceilings, you will build up less capital than if you had started earlier.
• In that case, the one-off final tax will only be withheld during the tenth year of your contract.

Maximise your tax advantage

Whether you have just started out or have been saving for your pension for several years, in the year that you turn 54 years of age, you need to decide how you intend to continue saving after your 55th birthday.

Individual ceiling

If you did not pay the default maximum amount that qualifies for tax relief before the age of 55, you will not be able to increase your payments after your 55th birthday.

Think about how much you want to pay

Did you contribute the maximum default amount in the year you turned 54? If so, you can choose the amount of your annual payments from age 55 onwards, up to the tax-exempt ceiling or less, whichever suits you best.

The default maximum amounts for pension savings

If you decide to pay the default maximum amount, you must choose between the basic or the higher ceiling.

• If you choose to pay the higher ceiling of 1,350 euros in the year you turn 54, you can also opt for this ceiling in the future. If you wish to continue paying the higher ceiling of 1,350 euros, you must confirm your choice each year.
• If you choose to pay the basic ceiling of 1,050 euros, this is your only option until the end of the contract.

Note: these amounts are applicable for the tax year 2025 and are, in principle, subject to annual indexation. Find out more about these default maximum amounts.

Tax-exempt ceilings for long-term savings

The default maximum amount for long-term savings is 2,530 euros (income year 2025).

• If you've been paying the same amount every year and want to continue doing so, you can keep paying into your pension savings after you turn 55.
• If you want to increase your payments after you turn 55, make sure to pay the desired amount in the year you turn 54. This will allow you to continue paying that amount after your 55th birthday.
• If you opened a long-term savings account in the year you turned 54, pay the amount you want to continue paying after you turn 55 as soon as possible.

Note: If you have a property loan that offers a tax advantage, you may also be able to benefit from long-term savings. Learn more about your options and potential savings in this article.

Optimise your savings

Are you already saving for your retirement and making the maximum payments? There are several ways to set aside even more money for your retirement, without tax reductions. Discover the possibilities.

Start saving for tax purposes