The 80% pension income fake promise
Employees and self-employed can save for their retirement in a group insurance fund or in an IPT / EIP. The contributions to this fund can be subtracted from the company (employer) profits. Our dear belgian government has put a limit on the contributions. They decided on “the 80 % rule”. The 80 % rule “the…
The difference between US and Belgian Retirement plans
The FIRE movement in the US is a big supporter of all kinds of retirement plans such as 401k, IRA, Roth IRA and many others. Retirement plans have a good reputation mainly because of their tax benefit. Sometimes that’s justified (as in most US schemes) but Belgian schemes are not all in the same boat.…
Comparison belgium pension savings formulas
Now that I have made detailed cases for three tax-advantage pension saving schemes, let’s summarize the three formulas in an easy overview. The detailed posts can be found here: personal pension saving: Individueel Pensioensparen / Epargne Pension VAPZ (Vrij Aanvullend Pensioen Zelfstandigen) / PLCI (Pension Libre Complémentaire pour Indépendants) IPT (Individuele Pensioen Toezegging) / EIP…
Pension Saving / Individueel Pensioensparen / L’épargne pension individuelle – Belgium
What? Save a limited amount of money each year on a dedicated ‘Pension Savings’ account. You get a discount of 30 % on your income taxes.
IPT / EIP: “Individuele Pensioen Toezegging” / “Engagement Individuel de Pension” – Belgium
What? A pension saving formula according to belgian law “Individuele Pensioen Toezegging” / “EIP: Engagement Individuel de Pension” Your employer (or your company if you are self-employed) puts money into your personal savings fund instead of paying it directly to you.