Planning for Pension

An additional pillar for building up substantial pension capital

What is Planning for Pension?

Planning for Pension is a life-assurance product (a combination of universal life insurance – branch 21 products - and fund-linked insurance - branch 23 products) from AG Insurance those who have already used up all the other possible tax exemptions. Planning for Pension aims to combine security with the potential for additional return.

Advantages

  • The combination of a guaranteed return and a potentially higher return.
  • Made to measure: you build up your capital as you feel is appropriate.
  • Flexible: you decide when your capital matures (between your 50th and 80th birthday).
 
    

Get full details

The standard Planning for Pension policy consists of two components:

  • The Capital Constitution component provides the security of capital protection and a guaranteed return (a branch 21 product). Each payment bears interest at a rate guaranteed until maturity. You can therefore be certain of guaranteed capital and a guaranteed return. This return is topped up by any with-profits bonus.
  • The Capital Plus compartment gives you the potential for a higher return from investment in funds (a branch 23 product). With this option, the percentage invested in equities automatically declines over the last 10 years of the policy. Any profits achieved are therefore secure.

You decide how quickly you build up your capital. You can begin regular savings from EUR 30 a month.

Prefer to make a one-off payment? This is possible from EUR 2,500. You can then make additional payments of a minimum of EUR 1,500.

  • A single payment:
    • You decide the amount to be guaranteed on maturity. Opting for full cover? You therefore want full capital protection.
    • You can also opt for a lower percentage of protection. If so, a larger proportion of your capital will be invested in the Capital Plus component, giving you the potential for a higher return.
  • Regular payments: depending on your risk profile (from conservative to aggressive), a proportion of your premium will be invested in the Capital Constitution component (security and protection) and the remainder in the Capital Plus component (a potentially higher return). Each profile therefore determines the proportion paid into the Capital Constitution component and what is paid into the Capital Plus component.

Your Planning for Pension matures between your 50th and 80th birthday. You choose the actual date. The minimum term is 8 years and 1 month.

 

Want to change the term during the life of your policy? This is possible, providing you comply with the terms and conditions laid down in the financial fact sheet.

 

Consult the life assurance financial fact sheet for a combination of universal life and fund-linked insurance (branches 21 and 23).

Personalised spread across the two components

 

• You prefer to invest a lump sum

 

If so, you determine for yourself the amount (before tax) you want to be absolutely sure of getting back at maturity.

 

This target is expressed relative to your original investment:

  • 100%: you aim to recover the whole of your original investment;
  • You can opt to limit full protection (at maturity) to part of your original capital.

 

That way, you release a larger proportion of the capital for investments with a potentially higher return. In this case you specify a percentage between 50 and 99% of your original capital.

 

• You can, however, also opt for a protected final capital that is higher than the original investment, and so guarantee yourself a minimum gain at maturity. You specify the desired percentage between 101 and 150% – provided of course that this return is actually feasible based on your gender, your age, the term of the investment and the interest rate at the time the capital is paid in!

 

 

Example1

Paul is 45 years old and invests a lump sum of 100,000 euros (not including 1.1% tax, including entry charges) in Planning for Pension. He wants to be certain that he will get back 100% of his original investment when he reaches the age of 65. Based on these choices and the interest rate at the time he pays in his capital (e.g. technical interest rate of 2.75%/year2), the formula will be as follows:

  • 77,275.06 euros is invested in the Capital Growth component;
  • 22,724.94 euros is invested in the Capital Plus component.

 

On Paul's 65th birthday, Planning for Pension will pay out the following:

100,000 euros, representing his original investment and resulting from the 77,275.06 euros invested in the Capital Growth component;

  • Any annual profit-sharing granted3 in the Capital Growth component;
  • The capital generated by the Capital Plus component, calculated as follows: number of units in the funds held, multiplied by the unit value.

 

 

Investor profilePremium spread over components
 Capital GrowthCapital Plus
Highly conservative90%10%
Conservative70%30%
Defensive50%50%
Highly neutral30%70%
Neutral10%90%

 

 

• You'd rather save on a regular basis than pay in a lump sum

 

You determine your ‘investor profile' yourself. Your regular payments into the plan will be spread over the two components based on that profile.

Flexibility at all times: you can also decide the spread yourself, regardless of the risk profile. You can even change the spread during the life of the contract.

 

Example1

Sophie, age 38, sets up a Planning for Pension with a monthly contribution of 30 euros (including 2% tax and entry charges). She wants to continue saving at that rate until the maturity date, which she has set to fall on her 60th birthday. Since she has a ‘defensive' risk profile, all the contributions will be spread over the two components according to the following formula:

  • 15 euros is invested in the Capital Growth component;
  • 15 euros is invested in the Capital Plus component.

 

On Sophie's 60th birthday, her Planning for Pension will pay out as follows:

5,032.01 euros due to the monthly paying in of 15 euros in the Capital Growth component (assuming a constant technical interest rate of, for example, 1.50%/year2);

  • Any annual profit-sharing granted3 in the Capital Growth component;
  • The capital generated by the Capital Plus component, calculated as follows: number of units in the funds held, multiplied by the unit value.

 

  1. The numbers provided here are purely illustrative. They reflect a fictitious situation and are based on the conditions applying on 1 January 2013. They are not binding for the customer or for BNP Paribas Fortis and/or AG Insurance.

  2. The rate of interest applying at the moment of deposit is applied to the net premium (i.e. deposit before tax, entry charges and risk premium) and is guaranteed for that deposit for the remaining term of the contract. Later deposits are subject to the rate of interest applying at the moment of deposit.

  3. Profit-sharing is not guaranteed. It varies according to the economic situation and the results of AG Insurance.

Planning for Pension brochure (pdf, FR)

General terms and conditions (pdf, FR)

 

Planning for Pension concerns an insurance product of AG Insurance, distributed by BNP Paribas Fortis. AG Insurance sa, Bd. E. Jacqmain 53, B-1000 Bruxelles – RPM Bruxelles – TVA BE0404.494.849 – www.aginsurance.be.
BNP Paribas Fortis SA/NV, Montagne du Parc 3, B-1000 Brussels – RPM Brussels – VAT BE0403.199.702, is registered and acting as insurance agent under FSMA n° 25.879A on behalf of AG Insurance sa.


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