Pensions for self-employed individuals, pillars and tax benefits: what you need to know

Pensions for self-employed individuals: key points to remember

• In Belgium, the statutory pension (i.e. the one paid by the State) for self-employed individuals is generally lower than that of employees and civil servants.
• The amount will be less than what you  earned over the course of your career, and may not be enough to maintain a comfortable  standard of living.
• There are various plans that enable you to save to supplement your future statutory pension while enjoying a tax benefit right now.
• Depending on their nature, these sources of savings are categorised into 4 pillars.
• For self-employed individuals, the supplementary pension plan is often the most attractive option.

Pensions for the self-employed in Belgium: 4 pillars for your retirement

When we talk about a pension, we’re referring to the income you’ll receive when you retire from your work career. And that future pension depends on what you do today.

There are various ways of setting it up. Firstly, through your professional income and the payment of social security contributions. But also, through various savings plans that offer tax benefits. Or you could save in whatever way you like, but without any tax benefits.

In Belgium, these different mechanisms are categorised into pillars known as the 4 pillars of the pension system.

The key takeaway? These mechanisms and their benefits can often be combined. You can therefore draw on the various pillars, and sometimes even choose several options within the same pillar to build up the pension that best suits your circumstances.

The statutory pension: the first pillar of your future retirement

The statutory pension is the pension that the government will pay you when you retire. You become entitled to a statutory pension by working and paying social security contributions (provided you meet a number of conditions).

The amount of your statutory pension and how it is calculated depend on 3 factors:

• Your employment status: self-employed, employee or civil servant
• Your employment income: higher income will result in a higher statutory pension. But there is one limitation: there is a cap on the pension amount, just as there is a threshold and therefore a guaranteed minimum.
• The length of your working life: a longer career entitles you to a higher pension.

The statutory pension the self-employed: key figures

• According to PensionStat.be, the average pension for a self-employed person is €1,243 (gross amount as of1 January 2025).
• As of 1 September 2026 and according to the INASTI, the minimum pension following a full 45-year career as a self-employed person amounted to €22,582.98 gross per annum for a single person, or €1,881.91 per month. This minimum pension is only guaranteed after 30 years’ service. This amount, based on a 45-year career, is weighted according to the actual number of years you worked.
• How much will my future statutory pension as a self-employed person be? How much have I saved so far through my supplementary pension plan? And when will I be able to start drawing my pension? You can find an estimate of your pension and the answers to these questions via your My Pension online pension account.

Supplementary pension plans: a vital second pillar for self-employed individuals

A supplementary pension refers to all pension plans that are directly linked to your employment. All supplementary pension plans entitle the holder to a benefit, almost always of a tax-related nature.

Supplementary pensions are available to employees and self-employed people, but not to civil servants.

As a self-employed individual, a supplementary pension is a critical issue for you, because:

• It is up to you to take the initiative and choose your supplementary pension options. If you do nothing, you’ll get nothing.
• Although it has changed following recent reforms, the pension for self-employed individuals generally remains lower than that of employees and civil servants.
• The benefits – whether tax-related or otherwise – are substantial and can often be combined, which means you can save more on favourable terms.

The main supplementary pension plans for self-employed individuals

There is therefore not just one, but several possible supplementary pension plans for self-employed people, which you can often combine.

Some depend on how your business is set up: whether you're self-employed in your own name or running your business through a company. Others are tailored to your line of work and professional sector, particularly the medical professions. 

The supplementary voluntary pension plan for self-employed individuals, or PLCI

How does the PLCI work?

The PLCI is undoubtedly the most widespread and accessible supplementary pension plan. The vast majority of self-employed people are eligible for it: self-employed individuals operating as sole traders or through a company, assisting spouses, self-employed carers, and so on. Given this very broad coverage, the PLCI is often the first option suggested when you wish to build up your supplementary pension.

Comment fonctionne la PLCI ?

As explained in detail here, you choose a pension provider with whom you enter into a supplementary voluntary pension plan for self-employed individuals. You set the amount you wish to save each year, which you can also split into monthly instalments.

You can deduct the amount of your PLCI premiums as a business expense for tax purposes.

The result? Your taxable income is reduced, so you pay less tax as a self-employed individual without a company. It also enables you to reduce your social security contributions, as these are calculated on the basis of your employment income.

Interest allows you to grow your capital, and the money you have saved through your PLCI will be paid out to you when you start drawing your statutory pension (after the deduction of contributions).

The CPTI: a supplement to the PLCI for self-employed individuals running a company

Are you a self-employed individual running a company? You can top up the maximum amount you save through your PLCI by taking out a Pension Plan for Self-Employed Individuals (CPTI). In this case, you are entitled to a tax reduction, which is a different type of tax benefit to that offered under the PLCI. You therefore save more by combining the tax benefits of the PLCI and the CPTI.

The EIP company pension plan, through your company

This supplementary pension is available only to self-employed individuals working within a company. How does it work? The company pays a contribution to build up a pension fund which will be paid to its director when they retire. It is therefore the company that makes contributions for the benefit of its director.

You can easily combine an EIP with a PLCI, while taking full advantage of the tax benefits offered by each of these plans.

What are the differences between PLCI and EIP?

As with the PLCI, you can claim the amount of your EIP premium as a business expense for tax purposes, but there are a few important differences:

• Because the EIP is paid by your company, the premiums are deducted from the company's taxable profit, reducing its corporate tax. In the case of a PLCI, the deduction is made against personal income tax.
• The statutory ceilings for premiums are not the same and are not based on the same criteria, as detailed here for the PLCI and here for the EIP.

The tax-advantaged individual pension plan under the third pillar: retirement savings for all

Unlike supplementary pensions, third-pillar pension plans do not necessarily depend on employment.

This tax benefit can be combined with those offered by supplementary pension plans. This means that to top up your statutory pension as a self-employed person (first pillar), you can opt for both a supplementary pension (second pillar) and these third-pillar savings plans… and all while making the most of the maximum tax benefits available under each of these plans.

Pension savings and long-term savings: 2 options under the third pillar

 In both cases, you can choose between a plan with capital protection or one without capital protection, but with a potentially higher return.

What are the tax benefits of an individual pension savings plan?

Individual pension savings are available to everyone, regardless of their employment status. Every Belgian resident is therefore free to make use of this pillar and to benefit from the associated tax benefit.

The tax benefit you derive from a pension savings plan is a tax reduction. You state the amount you have paid in your personal income tax return, and a certain percentage (up to 30%) of this premium is deducted when your tax is calculated.

The standard amount you can pay into a pension savings plan in 2026 is €1,050. This statutory amount may change each year.
Good to know: are you starting a pension savings plan before you turn 55? An 8% flat-rate tax is deducted from the amount you have already saved by the age of 60. However, you will be exempt from paying contributions until you reach the state retirement age, which will make this savings plan even more attractive.

If you start drawing your pension savings from the age of 55, this same 8% tax will be deducted 10 years after starting your pension savings plan.

What are the tax benefits of long-term savings?

Unlike individual pension savings, long-term savings are only possible if you have income from employment (or replacement income).

The tax benefit of long-term savings also takes the form of a tax reduction equivalent to 30% of the amount of your premium. In principle, you can combine this benefit with that of a pension savings plan.

The amount you can pay into and claim as a tax deduction from a long-term savings plan depends on your income, with a maximum of €2,450 for 2026. The amount you can pay in and claim as a deduction may also be limited by other deductible items on your tax return, such as a mortgage interest payment that is still deductible.

Voluntary savings: the fourth pillar of the pension system

The fourth and final pillar of the Belgian pension system is unrestricted savings.

Savings accounts, funds, shares, bonds, property – unlike the other three pillars, these options do not offer pension-specific tax advantages.

What are the key takeaways from all this? Most importantly, these solutions and mechanisms can often be combined. You therefore have every reason to take a comprehensive approach to pension planning.

Selecting from different options can help you maximise your benefits and what you save for the future.