The federal government is expected to spend a record-breaking €650 million on pension savings tax benefits this year, according to data from the Ministry of Finance reported by De Tijd and L’Echo.
Individuals participating in pension savings schemes, through either funds or life insurance policies, receive annual tax reductions of 30% or 25%, depending on the amount they contribute.
The Ministry of Finance’s March publication of federal tax expenditure figures forecasts that these benefits will cost €650 million in 2023.
This is up from €635 million in 2025 and marks a significant increase compared to less than €400 million twenty years ago.
Several factors contribute to this rise. Indexation of the tax reduction thresholds has continued, while average contributions have increased.
Additionally, the number of participants has sharply grown, from 1.4 million in 2001 to nearly 2.5 million in 2013. However, this figure has stabilised over the past decade.
Currently, approximately 26% of Belgium’s 9.6 million taxpayers make use of the so-called “third pillar” of pension savings.
Participation rates vary across regions. In Flanders, three out of ten taxpayers save for their pensions, compared to two out of ten in Wallonia and 12.8% in Brussels.
Statistics from 2022 also indicate that lower-income individuals are less likely to engage in pension savings.
The newspapers further report that the federal government is preparing measures to make pension savings more appealing. These initiatives aim to reduce associated costs and enhance transparency around the schemes.
