Self-employed individual without a company: how can you top up your statutory pension?

Pensions for self-employed individuals: key points to remember

• Your statutory pension is the one paid to you by the state.
• You can top it up with a supplementary pension linked to your professional activity.
• For a self-employed individual without a company, the Supplementary Pension Plan for Self-Employed Individuals (PLCI) is generally the first option to consider.
• Contributions paid into a PLCI provide reduce your tax and social security contributions.
• The amount you pay into a PLCI and the tax benefit are subject to a cap. You can opt for a Personal Pension Plan for Self-Employed Individuals (CPTI) to supplement your PLCI and benefit from a further tax advantage.
• The amount you can contribute  to a CPTI is limited, in particular, by the 80% rule.

Pensions for self-employed individuals: plan for the future and benefit today

Why is it in your best interests, as a self-employed person, to think about your pension  before you retire? First and foremost, for 1 obvious reason: the amount of your future statutory pension  and its impact on your standard of living.

Statutory pension: what is it?

The statutory pension (also known as the first pension pillar) is the pension paid to you by the state based on your professional activity and social security contributions.

The amount depends on your income, employment status (self-employed, employee, or civil servant), career duration, and family situation.

This statutory pension will, in all cases, be lower than your average professional earnings - and this is particularly true for the self-employed.

According to PensionStat.be, while the average pension in Belgium stands at €2,046 (January 2025 figures), this drops to €1,243 for self-employed individuals.

To maintain your standard of living after retirement, you should therefore save to supplement your statutory pension.

Supplementary pension for self-employed individuals: what is it?

Public authorities encourage this form of saving through incentives, mainly tax benefits. Some of these incentives are directly linked to your professional activity. This is known as a supplementary pension (or second pillar of the pension system).

Second pillar pension plan: a choice for self-employed individuals

As a self-employed person, it is up to you to choose the supplementary pension option(s) that suit you best.  For self-employed individuals without a company, the choice often comes down to 2 specific solutions:

• The Supplementary Pension Plan for Self-employed Individuals, or PLCI
• The Pension Plan for Self-Employed Workers, or CPTI

For certain medical professions covered by Belgian health insurance, INAMI may pay a premium towards a supplementary pension, as explained here.

The PLCI: the main supplementary pension plan for the self-employed

The PLCI is often the first option considered for a supplementary pension for self-employed individuals without a company, for several reasons:

• It is available to all self-employed people, including those working full-time or part-time, assisting spouses covered by the ‘maxi-statut’ scheme, self-employed carers, as well as self-employed business owners working within a company.
• The tax benefit takes the form of both a reduction in personal income tax and a reduction in social security contributions.
• It is flexible: from one year to the next, you can adjust the amount or decide not to pay anything.
• Your supplementary private pension plan can also provide additional cover, for example in the event of incapacity for work or death. This can be done either by adding optional cover to your policy or by opting for the voluntary supplementary social pension, a specific form of PLCI.

PLCI, savings and tax benefits: how does it work?

Le fonctionnement de la PLCI est simple :

1. You choose a pension provider with which you sign a supplementary voluntary pension plan agreement.
2. You pay contributions that will form the basis of your future pension.
3. From a tax perspective, contributions are regarded as business expenses and are deductible as such for the purposes of personal income tax.
4. This deduction will therefore reduce the amount of your taxable professional income, and the amount of  tax you pay.
5. The amount of your social security contributions is calculated on the basis of your professional income. They may also be reduced as a result of of your PLCI contributions.
6. The amount of your contributions and your tax benefit are subject to a dual statutory cap: a percentage of your income and an absolute maximum.
7. You will receive the amount you have saved when you apply for your statutory pension. You cannot access it before then, except to finance a real estate project. When the payment is made, INAMI deductions (3.55%) and a solidarity contribution (2%) are deducted from the amount. In the event of death, the savings accumulated pass to your heirs.

What are the contribution limits for your PLCI?

Are there limits on what you can pay into your PLCI, and therefore a cap on your tax benefit? Yes, both statutory minimum and maximum limits apply:

• You must contribute at least €100 to your PLCI (€111 for a PLCIS – see below).
• The maximum amount that can be deducted each year depends primarily on your reference income. In 2026, you will be able to contribute up to 8.50% of this income to a PLCI, and 9.78% to a Social PLCI (see below).
• In addition to the reference income, the maximum amount that can be deducted is subject to an absolute ceiling. Whatever your income, you can claim a maximum deduction of €4,251.39 through your PLCI, and €4,891.60 through a Social PLCI (see below).

The Social PLCI alternative

The Social Supplementary Pension Plan for Self-employed Individuals (PLCIS) is a variant of the PLCI.

As well as saving for your pension and enjoying tax advantages, you also receive additional protection, known as the ‘solidarity component’. In practical terms, you or your loved ones will receive financial support in certain situations: incapacity for work or disability, death, etc.

Part of the premium - the statutory minimum of 10% - covers these social security contributions.

What are the differences between a PLCI and a Social PLCI?

Reference income for my PLCI: what is it?

Your reference income is your net taxable employment income from 3 years ago, adjusted for inflation. You will find it on the payment notice for your social security contributions issued by your social security fund. Have you been self-employed for less than 3 years? Your premium is calculated on the basis of the amount of your social security contributions.

Using your pension savings to fund a real estate project

Under certain conditions, you may use your PLCI savings before you reach state pension retirement age to finance real estate purchases or renovations, whether for private or business purposes, within the European Economic Area. This is an attractive alternative to a mortgage, not least because it involves no borrowing costs, notary fees or registration charges.

This transaction can take the form of an advance, on which interest is payable.

How can I top up my savings and my PLCI benefit?

Are you already saving the legal maximum via your PLCI, and would you like to exceed that limit? The Pension Plan for Self-employed Workers (CPTI) is another supplementary pension option. This tax benefit can be claimed in addition to that provided under the PLCI.

The CPTI: who is it for and how does it work?

The CPTI is available only to self-employed individuals (without a company) working full-time or part-time (subject to a certain level of social security contributions), including assisting spouses who qualify for the ‘maxi’ status.

Self-employed people without a company have access to another type of pension plan: the Individual Pension Commitment (EIP).

In practice, this means that:

1. You work out how much you wish to save in addition to your PLCI.
2. You choose a pension provider with which to take out a CPTI.
3. You pay pension contributions into this plan.
4. However, the amount of your contributions is capped by the 80% rule.
5. From a tax perspective, you are entitled to tax relief equivalent to 30% of your premium.
6. This tax mechanism differs from that of the PLCI. You can combine these 2 tax benefits.
7. When your CPTI savings are paid out upon reaching state retirement age, INAMI deductions (3.55%) and a solidarity contribution (2%) are deducted from the amount, along with a 10% tax for individuals.
8. You can withdraw your savings before you reach the statutory retirement age, but  you will then have to pay 33% tax.

The 80% rule: what is it?

The 80% rule is a statutory mechanism that sets a limit on your total future pension, i.e. the combined amount you will receive from your statutory pension and your supplementary pension:

• This total pension may not exceed 80% of your earnings from employment (based on the last 3 years in the case of a CPTI).
• The calculation required to apply the 80% rule is based, in particular on estimates of the statutory pension and the supplementary pension (expressed as an annual pension).
• The maximum amount of a CPTI will therefore depend on how much leeway you still have to reach this 80% limit.
• Given the complexity of the calculation, estimating the amount of your CPTI based on the 80% rule requires the assistance of a specialist in supplementary pensions.

Third-pillar pension savings: a bonus unrelated to your self-employment business

Would you like to top up your savings through supplementary pension plans? A pension savings plan allows you to do this while enjoying a tax benefit. These third-pillar plans are not linked to your employment. They are available to all Belgian residents aged 18 and over, and the tax benefit can be combined with those relating to your supplementary pension.

Self-employed individuals without a company: 1 pension, several options

What are the key takeaways?

First, making provision for a pension is a real challenge for self-employed individuals without a company. The associated tax benefits also make supplementary pension plans an attractive option.

As solutions and plans can often be combined, it is in your best interests to take a holistic approach to planning for your pension. Exploring the various options – without necessarily limiting yourself to an Individual Pension Plan – can help you maximise your benefits and the amount you save for the future.