Buy-back of years of study and supplementary work: risk of income reduction
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    Buy-back of years of study and supplementary work: risk of income reduction

    © Belga
    Buying back years of study may not yield the additional state pension initially promised under the proposals.
    © Belga

    Several tens of thousands of pensioners and people with disabilities, buying back years of study and supplementary work, will see their net pension income reduce. This is according to L’Echo. It is despite the government promise that a higher gross pension would not lead to a decrease in net pension.

    Those receiving a gross pension of between 1,263 and 1,329 euros per month, in buying back years of study, may earn up to a further 100 euros net per year. On the other hand, those receiving a pension of between 1,236 and 1,263 euros per month, will lose up to 45 euros net per year, according to a consultant at PwC (the global accountants and auditors, who also publish such findings). Single people who top up their pension by working more, risk losing even more: up to 700 euros per year.

    The pensioner in the band 1,263 to 1,329 euros will not keep much of the additional 100 euros per month earned. The study shows that depending upon the level of municipal taxes in their area, they will only keep 10.5 euros net in the best case scenario, which will decline to 2.5 euros net in the worst case scenario.

    Christopher Vincent
    The Brussels Times