📅 Last updated: 8 May 2026
· 🏷 Topic: Pension savings, tax benefit, decision
· 🇧🇪 For: Belgian employees and self-employed
Pension savings (pillar 3) has two possible annual ceilings: the regular amount of €1,050 with a 30% tax reduction, or the increased amount of €1,350 with a 25% reduction. Which choice makes more sense for you?
The math
| €1,050 (regular choice) | €1,350 (increased choice) | |
|---|---|---|
| Deposit | €1,050 | €1,350 |
| Tax reduction | 30% × €1,050 = €315 | 25% × €1,350 = €337.50 |
| Effective own cost (after tax benefit) | €735 | €1,012.50 |
| Amount that lands in your pension pot | €1,050 | €1,350 |
The analysis
The increased ceiling gives you a net €300 more saved, for an additional effective cost of €277.50.
At first glance, that is always favourable: you put in €277.50 more and your pension pot grows by €300. Plus, that extra amount then benefits from decades of compound interest.
But there are two conditions:
- You must be able to spare the extra €277.50 now. For someone on a tight budget, €735/year is still doable but €1,012.50 is not — in that case, stick with €1,050.
- Your horizon must be long enough. For someone retiring within 5 years, the extra contribution carries less weight than for a 30-year-old with 35+ years to retirement.
When the €1,050 choice is better
- Your income is low or variable — €315 of benefit on €1,050 feels significant.
- You don’t yet have a pension savings account — first build the habit, then potentially increase.
- You’re not sure you can deposit the full amount each year — €1,050 is more achievable as a baseline.
When the €1,350 choice is better
- You still have 15+ years to retirement — the compound effect maximises the extra €300/year.
- You have stable cashflow and can comfortably spare €1,012.50/year.
- You already use other tax benefits (EIP via your employer, possibly VAPZ as a self-employed person) and pension savings is a top-up.
The €1,260 break-even point
If you opt for the increased ceiling, make sure you actually deposit at least €1,260. That is the exact mathematical break-even: 25% of €1,260 equals €315 — the same tax benefit as 30% of €1,050. If you contribute anywhere between €1,050 and €1,260 under the €1,350 regime, your tax benefit is lower than if you had simply capped at €1,050. Wikifin, KBC Brussels and Crelan all confirm this threshold independently.
The €1,260 break-even point
If you opt for the increased ceiling, make sure you actually deposit at least €1,260. That is the exact mathematical break-even: 25% of €1,260 equals €315 — the same tax benefit as 30% of €1,050. If you contribute anywhere between €1,050 and €1,260 under the €1,350 regime, your tax benefit is lower than if you had simply capped at €1,050. Wikifin, KBC Brussels and Crelan all confirm this threshold independently.
Important: actively opt in
The increased choice (€1,350) must be actively requested at your bank or insurer via a separate declaration. There is no statutory deadline — the exact cut-off varies by provider, so confirm yours well before year-end. At some providers you must reconfirm this every year. If you forget, the default of €1,050 stays in place.
What you shouldn’t forget
Pension savings has an end-tax:
- At age 60, an 8% anticipatieve heffing (advance levy) is taken on the reconstructed value of your pension pot. The calculation base depends on the product type: for a pension savings fund the tax authority uses a fictitious 4.75% annual return on your contributions; for a branch 23 insurance contract it is the actual market value on your 60th birthday; for branch 21 it is the guaranteed premiums plus guaranteed interest.
- After that you can keep depositing through the calendar year in which you turn 64 (last contribution: 31 December of that year). Post-60 contributions still receive the annual tax reduction but do not trigger another anticipatieve heffing.
Early withdrawal is costly:
- Withdrawing pension money before age 60 → much higher tax (33% or more depending on age).
- Pension savings is therefore truly long-term — not a piggy-bank to dip into along the way.
New in 2026 — capital gains tax: Belgium’s new 10% capital gains tax on financial assets (effective 1 January 2026) does not apply to pension savings. Pillar 3 products fall explicitly outside its scope — your pensioensparen pot is unaffected by this reform.
New in 2026 — capital gains tax: Belgium’s new 10% capital gains tax on financial assets (effective 1 January 2026) does not apply to pension savings. Pillar 3 products fall explicitly outside its scope — your pensioensparen pot is unaffected by this reform.
💡 Not advice, just a decision framework: someone in a high tax bracket, with young children (long horizon) and stable cashflow, often finds that €1,350 comes out marginally better. Someone with a lot of income uncertainty is better off staying at €1,050. Always run the numbers for your own situation.
Sources
- Wikifin — Pension savings: amount and benefit (NL)
- FPS Finance — Tax reduction pension savings (NL)
- FSMA — Supplementary pensions
