Principle and benefits
This Branch 21 insurance allows you to build up a capital for your retirement thanks to a flexible savings plan accompanied with a preferential tax regime.
Contrary to banking solutions, retirement savings offer a guaranteed return.
Payments and maximum deductible amount
Payments are flexible, with a minimum of 5 payments made over 5 different tax years, each one remaining invested for at least 5 years; for the 2014 income you may deduct up to €950 in premiums payable before 31 December.
Taxation and conditions
You benefit from a tax reduction of 30% to 35%. The exact percentage depends on the amount of your professional income.
For all contracts taken out before the age of 55, tax will be levied on the 60th anniversary. From then on, premiums paid will be tax-deductible and will no longer be subjected to any taxation.
As a policy holder, you must be at least 18 years old and at most 64 years old as at the pension plan’s effective date.
The term cannot be less than 10 years.
The beneficiaries you have designated will get the total of all payments you have made, plus the bonus.
You can also define a minimum capital insured in the event of death so that your beneficiaries will get a capital amount determined beforehand, or the amount saved if this is the greater.
As long as the capital paid out in the event of death is greater than the amount saved, you will pay a risk premium which is deducted from the amount of your savings.
Retirement savings offer a guaranteed rate plus the potential bonus, and each premium paid benefits for the entire duration of the contract from the guaranteed interest rate in force at the time of payment.