Building up a pension as a self-employed person: 5 step plan
At Van Loon, we understand that independent entrepreneurs also need to make plans for accruing pensions. Eventually, there comes a time when you want to enjoy your well-deserved rest. Whether you still want to stay at work depends on the preparations you make.
Of course, you can count on the AOW benefit from your state pension age (67 years to 2027). This forms a foundation, but it may not be enough to live comfortably. If you want more financial security, you will have to work to accrue your pension yourself. These are the most important steps you need to take to accrue a pension as a self-employed person.
Determine your state pension age
The state pension age is linked to life expectancy and will remain at 67 from 2024. Thereafter, this age will gradually increase. It is important to calculate from what age you will need a pension and from which year you should take this into account.
Saving for retirement as a self-employed person
At Van Loon, we offer you options to save for retirement as a self-employed person with tax benefits. The money you put into your pension fund is tax deductible, which means that you get part of this money back through income tax. In addition, the amount saved is not counted as assets in box 3, so you do not pay tax on the value of your pension fund. Tax is only levied when you retire and actually receive money from your pension fund.
From mid-2023, new tax rules will come into force, offering freelancers more opportunities to accrue a tax-advantageous pension. This is good news for you, and we'll keep you up to date with the latest developments in this area.
Determine your required pension amount
The amount of pension required depends on your personal situation. For example, do you have your own home? Has your partner already accrued a pension? Are you considering selling your company at a profit in the future? It is important to map out your wishes for later. There are various online calculation tools available to calculate how much you need to save per month or year to receive a certain pension amount later.
For extra security, you can always come to us. We can give you more insight and put everything you need to know or take into account on paper for you.
Continuation of your (former) pension
If you used to be employed, you have probably already accrued a pension through your employer. You can often continue to accrue this pension with the same pension provider, this is called voluntary continuation. Here, you pay both the employee and employer parts of the premium yourself. This form of pension accrual can be advantageous, especially if the pension plan also offers coverage in the event of death or disability. You can easily ask your pension provider whether you are eligible to continue. Of course, we can also initiate this procedure for you.
Bank savings or annuity
Tax-efficient pension savings always take place via a special pension product, such as annuity insurance or bank savings account. You can invest money once or periodically, which then provides a return through investments. At the time of retirement, you can use the proceeds of this money to purchase a temporary or lifelong pension. There is a maximum amount that you can deposit annually, known as the annual space. At Van Loon, we are happy to help you calculate your annual space and show you how much you can save for your pension as a self-employed person in a tax-efficient way.
At Van Loon, we understand the unique challenges of freelancers in accruing their pensions. We're here to guide and support you every step of the way to a financially secure future. Together, we'll build your pension!
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