VSPSS (Voluntary Supplementary Pension Scheme for the Self-Employed)
KBC Life Pension Plan – VSPSS
- Build a bigger pension pot for later life
- Pay less tax and social security contributions
- Benefit from a guaranteed return
What is a VSPSS?
A VSPSS, or Voluntary Supplementary Pension Scheme for the Self-Employed, is the most tax-advantageous way for the self-employed to accumulate supplementary pension. A VSPSS helps you increase your purchasing power during your retirement years.
The KBC Life Pension Plan – VSPSS also offers you a sufficient degree of security thanks to a guaranteed return, which can be further supplemented with a variable profit share. Not convinced yet? Then bear in mind that a voluntary supplementary pension will already get you a nice bit of tax relief now, and you’ll later pay only a small tax charge on the capital you accumulate.
The benefits of a 'regular' VSPSS
- The contributions paid are fully deductible as business expenses. Each year, you can pay up to 8.17% of your income from three years previously into the VSPSS, enabling you to enjoy tax savings in your highest income tax band
- The tax relief gives you lower taxable income and this also reduces the social security contributions you're liable for.
- When the VSPSS is paid out, you benefit from a favourable final tax charge on the capital you’ve accumulated. Thus, the capital (including the profit share) is subject to a charge of 3.55% for national health and disability insurance (NIHDI) purposes plus a solidarity contribution of a maximum of 2%.The capital sum accumulated by way of profit sharing is not taxed further. The other portion of the payout qualifies for spread taxation as earned income according to the system of notional interest.
- There is absolutely no premium tax due.
You can incorporate additional death cover into your KBC Life Pension Plan – VSPSS contract, protecting your loved ones. If you should die early, they receive the contract capital sum.
If you want to get the maximum tax benefit from your VSPSS, you no longer need to ask your accountant or insurance intermediary to do this for you. Change your policy to ‘Maximum tax relief based on your income’. Starting this year, we’ll get your income details from the government every year, so you won’t ever miss out on any tax benefits again.
Up until the time of retirement, the contributions that are paid in generate a return and constitute the final pension capital. Are you buying a KBC Life Pension Plan – VSPSS today? Then the interest earned is 2.0% for all deposits and is guaranteed until the contract’s expiry date.
If the economic situation and KBC Brussels Insurance’s earnings allow, this income from the KBC Life Pension Plan – VSPSS can be supplemented annually with a variable, non-guaranteed profit share.
Features of a Life Pension Plan – VSPSS
| Legal form | Guaranteed-rate life insurance |
| VSPSS payout | Upon legal retirement or upon death prior to retirement |
| Tax relief on VSPSS premiums | Annual tax deductible figure of up to 8.17% of the indexed net taxable earned income from three years previously |
If you prefer a social VSPSS, you can deduct 15% more than with a ‘standard’ VSPSS and you benefit from better protection, including in the event of incapacity for work, disability, and maternity leave.
Information about sustainability
This product promotes environmental and social characteristics that allow contributing to a positive impact on the environment or society, but does not have a sustainable investment as an objective. Moreover, we strive to limit any negative impact on the environment or society based on a responsible investment policy. More information can be found in your info sheet.
This product was awarded the ‘Towards Sustainability’ label for a period of one year. The label, which was developed by Febelfin (the Belgian banking federation), is re-evaluated every year. It is a quality standard under the supervision of the Central Labelling Agency of the Belgian SRI Label (CLA). The standard defines several minimum requirements that sustainable financial products must meet at product level and in the investment process. See www.towardssustainability.be/en/quality-standard for more details. Products that are awarded this label may not meet your own sustainability objectives and the label itself may not necessarily meet the requirements of future national or European regulations. Learn more at www.fsma.be/en/sustainable-finance.
Interested?
If you are interested in a VSPSS or would like to know how to combine it with an individual pension scheme, a pension agreement for the self-employed or any other supplementary pension savings scheme, please enter your contact details and we will contact you as soon as possible for a no-obligation consultation.