Private Pension Savings: Who Qualifies and What You Get
Learn how to use tax-deductible contributions to fill gaps in your retirement savings through private accounts.
This scheme allows you to make extra contributions to private retirement accounts to help make up for any shortfalls in your pension coverage.
Who it's for
This is available to anyone who has a pension gap, meaning your current pension coverage may not be enough to meet your needs in retirement.
What you get
You can make contributions to private accounts that are tax-deductible. This helps you save more for your future while reducing your taxable income.
What it costs you
To participate, you must calculate your 'jaarruimte' (annual space). This is a specific amount you are allowed to contribute based on the income you earned in the previous year.
The catch to know
You must use the official calculator to determine your allowed contribution amount. If you do not, you risk over-contributing, which can lead to issues with the tax authorities.
How to apply
- Review your pension history to identify if you have a gap.
- Calculate your 'jaarruimte' using the official tools provided by the tax authorities.
- Open or contribute to a qualified private pension account.
- Claim the tax deduction when you file your annual tax return.