Pension savings 2026: how much to pay in, and into what?

The principle: a yearly payment, a tax reduction, a lump sum at 60

Pension savings are the third pillar of the Belgian pension system: individual savings open to any taxpayer with taxable income (employee, self-employed, company director or civil servant). You pay in whenever you like, up to a yearly ceiling, and the State gives you back part of the payment as a tax reduction. In return, the money is locked in: in principle it only comes back from age 60, and a final 8% tax applies. Where does this pillar sit next to the State pension and the supplementary pension built through your work? Our page The 4 pillars of the Belgian pension (in French) draws the full map.

Three families of products carry this tax regime: the pension savings fund, branch 21 pension savings insurance (guaranteed return) and branch 23 insurance (invested return, not guaranteed). The tax benefit is the same for all three; what changes is the risk, the fees and the way the 8% tax is calculated. That is where the real decision lies, not in the choice of ceiling.

How much to pay in? The double-ceiling trap

For payments made in 2026 (2027 tax return), the law offers a choice of two tiers:

Source: FPS Finance and Wikifin, 2026 payments. Ceilings are indexed; the OECCBB states they are frozen until 2029.

Tier 2 looks like a bonus for anyone who can pay in more. It only becomes one past a certain point. Between €1,050 and €1,260, you are automatically placed on the 25% rate: your reduction is then lower than with a €1,050 payment. The break-even point is €1,260 (25% of €1,260 = €315). And to reach the maximum of €337.50, you have paid in €300 more than in tier 1 for only €22.50 of extra reduction.

This trap is not theoretical: according to the OECCBB, more than 2,200 taxpayers fell into it in the last tax return. More importantly, the reduction is a tax credit set against the tax you owe. If your tax is low or nil, it will not pay you this amount. And the ceiling is individual: in a couple, each partner has their own, to be used on their own contract.

Fund, branch 21 or branch 23: what is the difference?

The tax reduction is the same; the way the product works is not.

Over 20 or 30 years, two factors decide the net result: the level of risk you accept and the total cost. A low-risk but expensive fund can return less than a lean branch 21 policy; an equity fund held for 25 years follows the markets, dips included. The guaranteed rate of a branch 21 policy varies from one insurer to another and changes every year: it only applies for the stated period. Always compare the guaranteed rate, how long it lasts, and what happens afterwards.

Another point rarely covered: in branch 23, the value of the contract on your 60^th birthday is the basis for the tax, which makes the birthday date and the value on that day relevant if markets are low or high. A contract can also combine the two (branch 44).

Who can open one, and up to what age?

• Age when opening: between 18 and 65, tax resident in Belgium or the EEA.
• Minimum term: at least 10 years.
• Last payments: up to the year you turn 64. This limit did not follow the rise of the legal retirement age to 66: that would take a law, which to our knowledge does not exist (Test Achats).
• If you start after 55: the 8% tax is levied on the tenth anniversary of the contract rather than at 60.

You can pay in one go, in regular instalments or irregularly: there is no obligation to pay every year, and you can change the amount. Keep in mind that the contract runs for at least ten years: paying in late, at 62, only makes sense if that horizon fits your plans.

The 8% tax at 60: how it works

The 8% advance tax is final: once paid, you owe no more tax on this capital, whenever you withdraw it afterwards. It is levied on your 60^th birthday (or on the 10^th anniversary of the contract if you started after 55) by the provider, on the value of the savings on that date, using the basis specific to each product (see the table above). You do not have to withdraw the money at 60: the capital can stay invested.

Wikifin points out that it can be worth continuing to pay in after 60, up to the last possible payment: these new payments still qualify for the tax reduction. In return, they are not taxed a second time, as the 8% tax was levied once at 60. It depends on how long you can wait before touching the money.

Fees: what really costs money, and the reform under discussion

Over 25 years, an extra 1% in yearly fees weighs heavily: for the same gross return, it noticeably reduces the final capital. Entry fees can reach 6.5% of each payment depending on the product, and management fees come on top every year; they vary widely from one provider to another, and from one fund to another. Some providers also charge exit and transfer fees.

The subject is political: on 17 July 2026, Minister Jambon presented the government with a plan to ban entry and exit fees when switching provider or withdrawing early, and to open the market to players other than banks, without capping management fees. Vooruit is calling for a strict cap (1% on entry, 0.75% a year). To our knowledge, nothing had been voted as of 2 October 2026: do not base your decision on a reform still to come. What matters today: ask for the total cost (entry + management + exit + transfer) before you sign, and compare that figure, not just the advertised return.

Employee, self-employed or company director: pension savings next to your work pension

Pension savings are open to every taxpayer, whatever their status. For the self-employed and company directors, they come on top of the supplementary pension linked to their business: the two mechanisms can be combined, each with its own tax treatment.

The tax benefit of the 2^nd pillar and that of the 3^rd pillar cannot be ranked in general: it all depends on your income, your marginal tax rate, your status and the margins already used. The order of priority is built on your situation, not on a ranking.

Death, beneficiary, transfer: the practical side

• Death before 60: according to Assuralia, the capital is taxed at 8%, then subject to inheritance tax. After 60, the tax has already been paid: heirs only pay inheritance tax. These rules may vary depending on the product and the contract.
• Beneficiary clause: it is drafted when you open the plan and should be updated after a marriage, a separation or a birth. A standard clause does not always reflect your situation.
• Switching provider: possible, but exit fees may apply; check them before transferring, and check that the new contract continues with the same term and the same tax basis.
• Tax return: the provider reports your payments to the tax authorities; still, check the amount and that it is correctly entered in your tax return.