The Flemish Christian Democrats (CD&V) have proposed a new savings scheme that combines pension savings with a plan to help young people buy their first home.
Currently, young people face significant challenges in becoming homeowners without financial assistance from family. According to CD&V, 80% of individuals aged 25 to 34 are affected.
CD&V have introduced a draft law to address this issue. The plan would allow early withdrawal of a portion of pension savings, which benefit from a 30% tax reduction, to finance a home purchase.
Under the proposal, up to 15% of the median price of a house - currently a maximum of €43,500 - could be accessed early. The remaining savings would continue growing until retirement.
To encourage participation, the annual savings amount eligible for the 30% tax advantage would increase from €1,050 to €3,880 under the new system.
CD&V claims this approach would enable higher savings compared to existing pension or long-term savings schemes. They argue the new plan should not be subject to the 10% capital gains tax but instead taxed at a lower final rate of 8%, similar to traditional pension savings.
