Finclub is the recently founded alumni association of the Master in Personal Financial Planning (MPFP). The association’s goal is to strengthen the bonds between AMS alumni, especially those of MPFP. On May 8, we had our first event on 'Actualia Pensions'. With more than 30 enrollments, we can look back on a successful first edition.
The preparation of sound personal financial planning demands not only a broad view, paying attention to fiscal, legal, economic, and social aspects, but also requires continuous training in an ever-evolving legal and economic framework. Exchanging knowledge about the various domains and networking with specialists in combination with a critical and persevering attitude is a real added value.
Professor Yves Stevens took us through the newest evolutions in pensions. In 2018, the early retirement age is 63 provided you’ve worked for 41 years. The start of statutory pension determines the payment date of any supplementary pensions. This means it isn’t necessarily the same date as the contractually determined payment date. The latter date only plays a role in projection purposes, as the expected pension capital or the calculation of the infamous 80% rule.
"The start of statutory pension determines the payment date of any supplementary pensions."
Furhtermore, we were not really warmed up for the purchase of our study years to raise our future pension. Although your study years can count as years worked in the pension calculation, this doesn’t seem to be equally interesting for everyone.
While wage earners continue to accumulate more pension rights via their social security contributions, the pension for self-employed people also moves in the right direction, be it step by step. With a quiz, we were also immersed in the Pension Agreement for Self-Employed Workers (POZ in Flemish), the latest saving formula for independent entrepreneurs within the pension pillar. The winner of the quiz went home with a good bottle of wine, which will surely make him forget any pension issues.
"The fiscal “ranking” of the various complementary pensions and saving formulas was interesting as well. Conclusion: first choose the Supplementary Pension for Self-Employed Workers (VAPZ), then the Individual Pension Allowance (IPT)."
The fiscal “ranking” of the various complementary pensions and saving formulas was interesting as well. The clear conclusion: first the Supplementary Pension for Self-Employed Workers (VAPZ in Flemish), then the Individual Pension Allowance (IPT in Flemish) for those who want a bigger amount, because of the deductibility of VAPZ in the higher personal income tax scales, the positive impact on social security contributions, the absence of insurance tax and, in particular, the advantageous final tax via notional interest.
Professor Stevens ended his talk with a few critical reflections on future evolutions. We can conclude that you better save your own money and don’t be dependent on whimsical political decisions or an uncertain pension system. A clear plea for the importance of sound personal financial planning!
"We can conclude that you better save your own money and don’t be dependent on whimsical political decisions or an uncertain pension system."
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