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1. The second column is still too thin
Relying solely on the state pension to maintain living standards in retirement is short-sighted. The best way to improve your situation is to build up pension savings (3rd pillar) and, above all, a supplementary pension from the 2nd pillar: via group insurance or pension funds, for employees; or via equivalent products for the self-employed (individual pension commitment, free additional pension).
However, less than a third of respondents say they are preparing for retirement to maintain their standard of living in retirement. And above all, the Belgians’ reserves are still far too low today, estimates Patrick Wangneur, consultant at CBC Banque. What the FSMA (Financial Services and Markets Authority) also states: The “average acquired reserve” (capital) of people who are approaching retirement age (55-64 years) and are connected to the second pension pillar is around 59,000 euros (capital , which is taxed). at more than 20% for those who receive it all at once, from the age of their statutory pension). An amount that corresponds to a monthly pension of… 155 euros. Together with any pension savings (around 1,000 euros per year tax-free), this amount does not guarantee that a pensioner will be able to live as well after retirement as before. “Pension savings represent only a small addition to the statutory pension and the second pillar,” estimates Pierre Devolder, professor of finance at UCLouvain. Especially since Belgians also tend to underestimate their life expectancy at retirement age, which is on average 20 years (our infographic).
Pensioner survey ©IPM Graphics
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Our system dates back to the end of World War II. Would you drive a car from 1945 today? However, this is analogous to what we do in pension matters in Belgium.”
2. What is the government’s pension record?
The generalization of the second pillar supplementary pension was one of the main objectives of Vivaldi and the Pensions Minister Karine Lalieux (PS). “But no measures were taken in this direction,” denounces the CBC boss. “In general, the government has not carried out sufficient reforms to meet future challenges,” he adds, particularly targeting the sustainability of our pension system and the ongoing aging of the population. “In 2023, it makes no sense, even for young people starting their careers, to conclude an employment contract without an additional pension. The second pillar must be made compulsory insurance and there must be a minimum limit for membership contributions of 3% of salary. Some countries do that, why not Belgium?” asks Pierre Devolder. He also denounces the lack of real reform of the statutory pension: “There is a collective responsibility of the governments and political parties that have been in power for decades. Experts have been warning about statutory pension insurance for more than 30 years, and we have also been warning about the climate. Our system dates back to the end of World War II. Would you drive a car from 1945 today? However, this is analogous to what we do in pension matters in Belgium.”
How do you increase your state pension?
3. What about independents?
If our system needs to be improved, it is also about eliminating numerous inequalities, particularly between workers and workers, but also the self-employed, who have historically been disadvantaged compared to workers. “And we must not be mistaken: despite the corrections made, the statutory pension system will continue to be unfavorable for self-employed people who are now 40, 45 years old or older,” emphasizes Pierre Devolder. Only those who start independently today will benefit from an egalitarian system,” he remembers. Nevertheless, the tax administration sometimes proves to be particularly “unfair” towards the self-employed, in particular through the aggressive application of the “80% rule” (which stipulates that pensions – statutory pensions and supplementary pensions – cannot exceed). 80% of the last salary): “The tax administration sometimes considers premiums that the self-employed have paid for their supplementary pension as non-deductible expenses,” wonders Patrick Wangneur. Which further increases inequality…
4. Who knows the exact amount of their pension?
This is perhaps the only area where there can be some optimism: the level of information among Belgians about their pension and its mechanisms is gradually increasing. Of course, not everything is perfect: the only “real” measure that Vivaldi has taken in this area is the “pension bonus”, that is, a progressive bonus per year of work (maximum 3), paid over and above the early pension, paid in one installment when retiring – is still poorly understood by 7 out of 10 Belgians, for example.
The majority of young people do not expect to receive a statutory pension
But even today, 39% of those surveyed believe they are well informed about how their pension works – in 2019 it was only 21%. And more than 60% of Belgians have a clear (very clear or rather clear) idea of the amount they will receive in their pension. Remarkable improvements due in particular to the undeniable quality and success of the mypension.be website. Small consolation. But since there are no throttles…
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