Pension insurance for the self-employed: the options

When you’re self-employed, it’s crucial that you think about your pension in good time, as the statutory pension for self-employed entrepreneurs in Belgium is lower than employees can expect to receive. 

Many self-employed people ask themselves: how much pension will I receive if I’m self-employed? The good news is that you can decide to build up your pension and maintain a standard of living that suits your needs. You can create the same financial security employees enjoy by taking out pension insurance specifically for the self-employed. And the earlier you start, the more you can take advantage of the benefits.

A range of options are available for supplementing your pension, such as the Free Supplementary Pension for the Self-Employed (FSPSE), the Pension Agreement for the Self-Employed (PASE), the Individual Pension Commitment (IPC) and the Free Supplementary Pension for the Self-Employed with NIHDI (FSPSE NIHDI). This page explains everything you need to know about these options to make sure you are well informed and can build up  a comfortable pension.

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Free Supplementary Pension for the Self-Employed (FSPSE )

The Free Supplementary Pension for the Self-Employed is one of the most attractive options for self-employed entrepreneurs to build up an additional pension. How it works is simple: each year you pay a premium to build up your pension capital. You choose how much you put aside for your future retirement or times when you’re not working. The tax benefits associated with the Free Supplementary Pension for the Self-Employed mean that around two thirds of your deposits are borne by the tax authorities through a reduction in your personal income tax or social security contributions. This means that for every euro invested, your actual financial commitment remains rather limited while building up an attractive pension capital.

The advantages of the Free Supplementary Pension for the Self-Employed
  • Tax benefits: the premium is 100% deductible as a business expense, which means you pay less tax. What’s more, the premium will also be deducted from your net income, leading to lower social security contributions.
  • Flexibility: you decide how much you save, although certain conditions apply. This gives you the freedom to align your pension savings to your financial situation.
  • Protection in the event of incapacity for work: the Free Supplementary Pension for the Self-Employed can be combined with insurance that offers a payout in the event of incapacity for work or serious illness.
  • Supplement to your statutory pension: by combining the Free Supplementary Pension for the Self-Employed with your statutory pension, you can guarantee up to 80% of your current income for your retirement.





Want to find out more about the Free Supplementary Pension for the Self-Employed and the different options available to you?
More about the Free Supplementary Pension for the Self-Employed
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FSPSE NIHDI: specifically for healthcare professionals

The Free Supplementary Pension for the Self-Employed with NIHDI (FSPSE NIHDI) is a supplementary pension system in Belgium specifically aimed at the medical professions. Financed by the National Institute for Disability and Health Insurance (NIHDI), this pension allows affiliated healthcare professionals to build up a supplementary pension without making a contribution to the premiums themselves.
The FSPSE NIHDI is aimed at the following affiliated healthcare professionals: doctors, dentists, pharmacists, physiotherapists, speech therapists, midwives.
By agreeing to the rates set by the NIHDI, these professionals offer their patients care without exceeding said rates. In exchange, the healthcare professionals receive contributions paid into their supplementary pension by the NIHDI.

How does it work?
  • NIHDI contribution: the NIHDI allocates a specific amount to affiliated healthcare professionals each year.
  • Paid into a pension fund: the amounts are paid into a recognised pension fund of their choice.
  • Capitalisation: the amounts saved generate interest, so the beneficiary builds up capital for their pension without having to make direct contributions themselves.

Benefits:
  • No personal contribution: the supplementary pension is financed by the NIHDI.
  • Tax benefits: the contributions are exempt during the accrual phase and receive favourable tax treatment upon retirement.
  • Flexibility: select from a range of pension funds and the option to choose between a one-off lump sum or a lifetime annuity upon retirement.

Example: An affiliated doctor receives an annual contribution from the NIHDI, which is paid into a pension fund. Without making a contribution themselves, they build up a supplementary pension in addition to their statutory pension.
More information

The Individual Pension Commitment (IPC)

The Individual Pension Commitment (IPC) is an attractive solution for self-employed persons with a company, such as self-employed company managers. An IPC allows you to build up a supplementary pension in which the premiums are paid by your company rather than you. What’s more, you can combine an IPC with a Free Supplementary Pension for the Self-Employed (FSPSE) to further optimise your pension.


Benefits of an IPC:

  • Tax-deductible: the premiums are deductible as a business expense for your company, which leads to a tax benefit.
  • Protection against incapacity for work or death: the IPC may be extended with cover for incapacity for work or death insurance.
  • Access to a retirement lump sum: you have access to a retirement lump sum, even in the event of bankruptcy.
  • Guaranteed interest: the premiums benefit from a guaranteed interest rate, and can be supplemented with a profit-sharing scheme.

Example:
As a self-employed company manager, you deposit €5,000 in an IPC each year through your company. This amount is tax-deductible for your company, and you accrue an attractive pension. In addition, you can protect yourself further against risks such as incapacity for work.
More about the IPC

The Pension Agreement for the Self-Employed (PASE)

The Pension Agreement for the Self-Employed (PASE) is intended for self-employed persons without a company, such as sole proprietors and assisting spouses. This is a supplement to the FSPSE and offers additional possibilities to increase your pension.




Advantages of PASE:

  • Combination with FSPSE: you can take out a PASE alongside an FSPSE, allowing you to accrue a larger pension.
  • Tax benefits: the premiums are tax-deductible under certain conditions.
  • Protection against incapacity for work or death: you can add additional cover, just like with an IPC.
  • Low final taxation: the final tax on your retirement lump-sum capital is only 10%.

Example:
A self-employed entrepreneur can also take out a PASE in addition to an FSPSE to save even more for their retirement. This allows them to increase their future retirement lump sum and take advantage of tax breaks.
Read more about the PASE

Avoid surprises: simulate your pension

Curious to know how much pension you’ll receive as a self-employed entrepreneur? Our pension simulator allows you to calculate your pension as a self-employed entrepreneur quickly and easily. You will receive a detailed report with insights into your expected statutory pension and recommendations on how to supplement your pension, so you know exactly where you’re headed and can take action in good time.

Simulate your pension
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Save for your retirement

Alongside the FSPSE, IPC and PASE, other options are available to build up your pension, such as saving into a pension pot or personal savings. Contact your insurance expert to find out more.