The problem with the statutory self-employed pension

In Belgium, the statutory pension is based on a pay-as-you-go system. For a self-employed person who has contributed at the ceiling for 45 years, the average statutory pension hovers around €1,200 to €1,500 gross/month. That is lower than for an employee with an equivalent career, and well below the last earned income.

The consequence: without a supplementary pension, many self-employed people see their standard of living drop sharply at retirement. Fortunately, the Belgian legislator has set up several highly tax-advantageous schemes.

💡 The golden rule: every euro placed in a supplementary pension is deductible (partly or fully) from your taxable income, which reduces your personal income tax and your social contributions in the year of payment.

The 3 pillars to know

Pillar 1 — The statutory pension (INASTI)

Mandatory, financed by your social contributions (20.5% of your net taxable income up to the ceiling). You have no choice: you contribute automatically.

Pillar 2 — The occupational supplementary pension

Linked to your self-employed activity. This is where you find the PLCI (and its social variant), the EIP and the CPTI. Deductible contributions, capital received at 65 (or 60 under conditions).

Pillar 3 — Private pension savings

Open to everyone, employee and self-employed alike: classic pension savings (max ≈ €1,050/year, 30% tax reduction) or extended (max ≈ €1,350/year, 25% reduction). To combine with pillar 2.

PLCI: the foundation for every self-employed person

The PLCI (Voluntary Supplementary Pension for the Self-Employed (PLCI/VAPZ)) is the basic scheme. Accessible to any self-employed person up to date with social contributions, whatever the legal form (natural person or company).

2025 ceiling (to be confirmed for 2026)

  • Ordinary PLCI: 8.17% of the net taxable income of the year before last, capped at around €3,965/year
  • Social PLCI: 9.40% of income, capped at around €4,562/year (includes incapacity-for-work cover)

Tax advantages

The PLCI is doubly advantageous:

  • Payments are 100% deductible from professional income (not a tax reduction — a genuine deduction)
  • The deduction also reduces the reference income for INASTI social contributions: you save on personal income tax and on contributions

On a payment of €4,000, the total saving (personal income tax + social contributions) can exceed €2,000 depending on your bracket.

⚠️ At payout: the capital is taxed via a "fictitious annuity" under personal income tax, but the net return after tax remains very attractive thanks to the deduction effect at entry.

EIP: for self-employed people in a company

The EIP (Individual Pension Commitment (EIP/IPT)) is reserved for company directors (managers of an SRL, SA, etc.) who pay themselves a regular remuneration from their company.

How it works

Your company takes out a pension contract in your name and pays the premiums. These premiums are a deductible expense for the company (reduction of corporate income tax at 20% or 25%).

The 80% rule

The accumulated capital (statutory pension + EIP combined) cannot exceed 80% of the last gross annual remuneration capitalised over the career duration. Your insurer or accountant calculates this ceiling for you.

Combining PLCI + EIP

You can combine PLCI and EIP: the PLCI reduces your personal income tax, the EIP reduces the corporate income tax of your company. It is the most efficient strategy for an SRL director.

CPTI: for self-employed people as a natural person

The CPTI (Pension Agreement for Self-Employed (CPTI/POZ)) is the equivalent of the EIP for self-employed people as a natural person (not in a company).

Why it exists

Before 2018, a self-employed person as a natural person only had the PLCI. With a high income, the PLCI ceiling was quickly reached. The CPTI makes it possible to set up a supplement similar to the EIP, but without a company.

CPTI ceiling

Subject to the same 80% rule as the EIP. On high incomes, you can pay in several thousand euros per year, deductible from your professional income.

Combining PLCI + CPTI

Yes, this can be combined. You first maximise the PLCI (first reflex, the simplest deduction), then you activate a CPTI if your income justifies it (professional income above ~€50,000 taxable).

Which strategy according to your profile?

Profile
Recommended strategy
Beginning self-employed (income < 30k)
Ordinary PLCI at the max + private pension savings if capacity remains
Established self-employed as a natural person
Social PLCI at the max + CPTI as soon as income > 50k
Director of an SRL
PLCI at the max (personal) + EIP via the company + private pension savings
No PLCI possible if no full social contributions. Private pension savings remain.

Pitfalls to avoid

⚠️
Waiting until your fifties to start The snowball effect of compound interest plays out over 20-30 years. Starting at 30 with €200/month gives a final capital far higher than €600/month started at 50.
⚠️
Not checking the contract's fees Entry fees, annual management fees, fees on premiums: a gap of 1% per year can cost 20% of the final capital over 30 years. Compare at least 3 proposals.
⚠️
Confusing branch 21 and branch 23 Branch 21 = guaranteed capital, low return. Branch 23 = investment funds, potentially higher return but without guarantee. Most contracts allow a mix.
⚠️
Not aligning with your will The beneficiary in the event of death is designated in the contract. If you marry, divorce, or have a child, update this clause, otherwise the inheritance tax advantages may be lost.

In summary

A self-employed person who relies only on the statutory pension takes a real risk at retirement. The PLCI is the minimum reflex — non-negotiable. Depending on your status (natural person or company) and your income, add CPTI or EIP to maximise the tax effect.

Aim for a target of 10 to 15% of your net income set aside each year in these envelopes. That is the price of peace of mind.

⚖️ Disclaimer. Ceilings, rates and tax rules change every year. This article describes the 2025-2026 framework for guidance only. Check the applicable ceilings with your accountant or insurance advisor before making any payment.

Official sources

INASTI — The PLCI
Federal Pensions Service
FPS Finance — Pension savings
FSMA — Supervision of supplementary pensions