(Communicated)
In Belgium, the self-employed have access to several options to guarantee sufficient income once they retire. These options include, in particular, statutory and supplementary pensions, as well as individual retirement savings schemes. Discover through this article all you need to know to understand how retirement for the self-employed in Belgium works.
The legal pension
First of all, the self-employed are entitled to a basic legal pension, which is financed by social security contributions paid throughout their career. The amount of the legal pension is determined by several factors, such as the length of contribution, the average professional income and the retirement age.
However, it should be noted that without the PLCI and the EIP, the pension of a self-employed person is far from sufficient to guarantee him a good quality of life once retired. The self-employed are therefore encouraged to opt for a supplementary pension, to guarantee a sufficient level of income once they retire.
To this end, support for your retirement is necessary, in particular to help you choose the right option, in order to supplement your legal pension and enjoy the fiscal advantages associates.
Supplementary pensions
In addition to the legal pension, the self-employed can take out an optional supplementary pension. These are private pension plans that allow the self-employed to benefit from additional income once they retire.
THE supplementary pensions are financed by voluntary contributions and can take different forms, such as life insurance contracts or pension funds. In Belgium, a self-employed person incorporated as a company can take out a Free Complementary Pension for the Self-Employed (PLCI) or even have recourse to an Individual Pension Commitment (EIP).
If the self-employed person is without a company, he can enter into a PLCI or a Pension Agreement for Self-Employed Workers (CPTI), to build up a supplementary pension.
The importance of using an insurance broker
As a self-employed person, it can be difficult to navigate between the different retirement options available, to choose the plan that best suits your needs. This is where insurance brokers come in.
THE insurance brokers are insurance professionals who can help the self-employed understand the different retirement options available and choose the best plan for their situation. These specialists can also provide personalized advice on retirement planning, based on the objectives and financial needs of each self-employed person.
Also, these professionals can help compare the different supplemental pension options and individual retirement savings plans available on the market, to help self-employed people make an informed decision and choose the plan that offers the best benefits.
Finally, insurance brokers are also qualified to help the self-employed understand the various rules and regulations governing the pension system in Belgiumwhich can be particularly useful in avoiding costly mistakes.
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