Fewer Belgians are opting for a higher pension savings tax ceiling, according to a bank survey.
The previous Federal Government introduced a cap, allowing for more significant payments in exchange for a proportionately smaller tax benefit. In 2023, this cap stood at €990 for a 30% tax reduction, or €1,270 for a 25% tax advantage.
However, the measure, which didn't prove popular from its launch, seems to be losing even more ground. BNP Paribas Fortis reported that only 4.06% of its customers with a pension savings fund chose the higher cap in 2023, down from 5.69% the previous year. For pension savings insurance, the rate was even lower, at 2.33% in 2023, marginally down from 2.40% in 2022.
Belfius reported less than 1% of pension fund savers chose this type of ceiling. "This figure is still falling, proving that the marginal extra tax advantage of this cap is struggling to win over savers," the bank highlighted.
ING Belgium reported that the number of people opting for a higher cap remains "extremely low (about 1%) but stable."
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Traditionally, pension savings funds have been more popular than pension savings insurances. The incoming flow slightly decreased in 2023, according to Belfius and ING, or was at the same level as the previous year, as reported by BNP Paribas Fortis. In contrast, KBC recorded the "highest ever number of deposits."
In another development, the average yield rate of pension savings funds rose to 6.4% in 2023, according to Trends. However, substantial discrepancies have been noted between the different funds.
