Jurgen is 35 years old. He manages his own office of chartered accountants and earns a salary of EUR 40,000 per year.
Jurgen has already been working in his office as a self-employed individual for five years. He worked for five years prior to that as a salaried employee. He had no pension agreement at that time, which allows him to include these years within the scope of his individual pension scheme (EIP [Engagement Individuel de Pension]), a Branche 21 life insurance product.
According to the 80% rule, Jurgen can accumulate capital totalling a maximum of EUR 257,494.23. His company wants to make the maximum premium a deductible. It pays an annual premium of EUR 5,270.93 (including tax) into an individual pension scheme (EIP) in order to accumulate a pension capital of EUR 257,494.23. This capital will be paid out when Jurgen reaches 65.
Jurgen also wishes to protect himself and his family against financial consequences if he is rendered unable to work by illness or an accident. For this reason, he is opting for the supplementary insurance module "premium repayment". In other words, the premiums that would have been paid into his EIP during the period that he is unable to work will be reimbursed to his company without altering the coverage. To benefit from this additional cover, the company pays just EUR 141.41 per year.
To give his family even better protection, Jurgen also wants the ability to access his pension fund while he is unable to work. He is aware that all that he will actually be able to access from the INAMI will be a small amount of legal compensation for the duration of his illness or the period that he is unable to work due to an accident. He opts for an annuity of EUR 25,000. His office contributes a risk premium of EUR 670.74 per year towards this.
The premiums that Jurgen's company pays for his EIP are deductible from the company's tax so long as the 80% rule is respected.
When Jurgen turns 65 and his individual pension scheme matures, his capital will have amounted to EUR 257,494.23 (which, apart from a technical tax rate of 2% – a gross annual rate of income tax on the premium minus taxes and admission fees – will remain identical for the duration of the agreement). To this will be added any amounts due from the profit-sharing bonus.
This example is intended merely as an illustration and is neither binding on the client, nor BNP Paribas Fortis nor AG Insurance. It is based on the conditions valid on 1 July 2014 and on a fictitious situation.