You gradually build up a tidy lump sum for your retirement and can take advantage of a tax break of 30% of the premiums paid. Good planning!
What is the Pension Invest Plan?
The Pension Invest Plan is a pension-savings universal-life insurance policy (a branch 21 product) provided by AG Insurance with tax breaks that allows you to save, risk free, a sum to supplement your State pension.
It take the form of a regular savings package. The capital built up and the return are guaranteed. The rate guaranteed may be topped up a with-profits bonus, depending on the results of AG Insurance and the economic climate.
- Safe: the plan provides an attractive but risk-free return.
- Tax breaks: you can enjoy a tax break of as much as 30%.
- Essential: your pension savings supplement your State pension.
- Flexible: you can easily change your savings plan during the life of your policy.
- A safe haven for your loved ones: death cover is an option.
Get full details
You are free to decide how much you want to save each month (with a minimum of EUR 30) or year (with a minimum of EUR 360). You are under no obligation to invest every year.
The tax authority has set the following ceilings (from 2013 tax year):
- EUR 940 a year for pension savings. This ceiling applies to everyone between the ages of 18 and 64.
- EUR 2,260 a year for long-term savings. The amount applicable to you depends on a number of factors, including the level of your professional income and the extent to which you already benefit from tax breaks for a mortgage loan.
- In a two-taxpayer household, both partners can take advantage of this tax break.
- If your Pension Invest Plan fulfils all the tax criteria, your tax break is 30% of the total premiums (+ knock-on effect for local authority taxes).
- A pension savings contract starting before the age of 55 is subject to a 10% tax when you turn 60. This tax discharges you from any further taxation. In case of repayment before the age of 60, you will be subject to personal income tax, usually in the form of a withholding tax at the rate of 33.31%. For tax purposes, the value is calculated based on the accrued capital (i.e. the contributions capitalised at the guaranteed interest rate) excluding the amount of the capital created from profit-sharing distributions.
- A pensions savings contract starting after you turn 55 is subject to a 10% tax on the 10th anniversary of the contract. In case of repayment after you turn 60 but before the 10th anniversary of the contract, if you are still not yet retired or are subject to the system of unemployment with a company supplement, the tax increases to 33%.
Each premium is invested at a guaranteed rate prevailing when payment is made. A with-profits bonus may be added each year, depending on the results of AG Insurance and the economic climate.
- Exit fees: 0% on the end date, from the age of 60 (the insured) or in the case of death of the insured.
- Maximum 5% before the age of 60 (for full details, see the Legal info - Financial information sheet tab).
General terms and conditions (pdf, FR)Pension Invest Plan Financial factsheet (pdf, FR)
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This is in reference to an AG Insurance product, distributed by BNP Paribas Fortis.
AG Insurance sa/nv – 53 boulevard Emile Jacqmain, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0404.494.849 – www.aginsurance.be.
Accredited insurance company licenced under code number 0079, under the supervision of the National Bank of Belgium, 14 boulevard de Berlaimont, 1000 Brussels
BNP Paribas Fortis sa/nv, 3 Montagne du Parc, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0403.199.702, registered with the FSMA under n° 25.879A and acting as a contractually appointed insurance agent on behalf of AG Insurance sa/nv.