NN Scala Free Pension (VAPZ)

NN Scala Free Pension (VAPZ)

A Free Supplementary Pension for the Self-Employed, or VAPZ, is a way for you as a self-employed worker to supplement your statutory pension. A VAPZ also offers you possible extra tax and social benefits.

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Aanvullend pensioen voor zelfstandigen

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Fiscally attractive: deductible as a professional expense

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As a result, you may also pay lower social contributions

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Optional risk covers such as death and work disability possible

Objective

This product can be used to build up a supplementary pension in a way that is tax-efficient, whether or not with additional protection against the consequence of death and/or work disability.

Who is it for?

Persons with the following social statuses may take out this product:
• self-employed as main occupation,
• self-employed as a supplementary occupation,
• self-employed helper if subject to the same social contributions as self-employed as main occupation
• co-working spouse / legal partner (if “maxi-status”)

This product is intended for self-employed persons
* who mainly want the expected return to be safe, but probably low. It is only possible to pay premiums in Branch 21 via this product (guaranteed interest rate)
* who are mainly interested in the additional protection against the financial consequences of death and/or work disability  

Who is it not for?

This product is not intended for:
* persons working as an employee or public servant
* self-employed persons who mainly want the expected return to be higher, but not uncertain. It is not possible to pay premiums into Branch 23 funds via this product
* self-employed persons in their final 5 years before retirement.  

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BENEFITS
  • Tax and social benefits

The VAPZ premiums that you pay are fully deductible for income tax purposes as a professional expense. As a result of this deduction, you may also pay lower social contributions, depending on your income.
 

  • Optional risk cover

The optional risk cover for death and work disability will give you more financial security.

These protective risk covers may compensate for part of any loss of income if you are suddenly unable to work due to illness or accident. That way you can limit the impact on your family income if something happens to you.

Read more about the optional risk covers for Death and Work Disability.
 

  • Invest in property with Scala Free Pension

Looking to build, buy or renovate? If so, you can use your VAPZ Scala Free Pension.

  • Take a low-cost advance on the reserve in your policy
  • Or pledge your policy if you buy, build or renovate a property
     
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RISKS
  • With a VAPZ policy you save in Branch 21 and enjoy a capital guarantee. You can invest any profits shared in Branch 23. That way you benefit from a capital guarantee – and remember that the . This fixed interest rate will be applied until the end date of the agreement, or until a withdrawal is made, to the pension reserves formed by the cash deposits allocated to the insurance account before any date modifications are made to the fixed interest rate.
     
  • For investments in Branch 23, the capital and return are not guaranteed. The financial risk is borne in full by the policyholder. Your return depends on movements in the value of the underlying funds. There is no entitlement to profit-sharing.

Discuss with your broker what your investor profile is. This is essential for investing sensibly.

Tax matters

Taxes on premiums

  • Pension: 0%
  • Death: 0%
  • Work disability: 9.25%

Contributions and taxes on outpayment

  • End tax on pension capital
    When your capital is paid out, the system of applies. For a certain period of time, you declare a small percentage of the capital as income on your personal income tax return.
    This notional interest is taxed at the usual tax rates.

    Generation pact: if your pension capital is paid out at the earliest at the statutory retirement age and you remain in employment until that date, only 80% of your pension capital will be eligible for conversion into notional interest.
    This has also applied since 2019 for retirement before the age of 65 if you have had a full pensionable working career and if you were in employment until retirement.
     
  • Tax on capital in the event of death: the same applies as for the outpayment of pension capital. The net capital paid out is subject to inheritance tax. Your heirs indicate the notional interest rate in their tax return.

Overview of notional interest for retirement/death:

Age

Notional rate

Period of mandatory reporting

< 41  

1%

13 years

41-45

1.5%

13 years

46-50

2%

13 years

51-55

2,5%

13 years

56-58

3%

13 years

59-60

3.5%

13 years

61-62

4%

13 years

63-64

4.5%

13 years

65 and above

5% (of 80% of the capital)

10 years

Go through the information about the RIZIV/INAMI contribution, solidarity contribution, withholding tax and profit-sharing in the product sheet

Product sheet Scala Free Pension

 

Fees and premiums

Premiums

- Minimum: 100 euro per year

- Maximum: you can 8.17% of your net taxable occupational income from 3 years ago, within the annual ceiling.

Read more about the maximum amounts for fiscal life insurance here.

The premiums for the additional covers are calculated in addition to this budget, except for the death premium.

These premiums can also be deducted as a business expense.

Fees

Joining fees

  • Joining fee: maximum 7%
  • Management fees per year:
    • On the Branch 21 portion: 0.05% per year
    • On the Branch 23 portion: maximum 0.96% per year
    • Death capital:
      • ≤ € 200 000: 0.08% per year
      • > € 200 000: 0.07% per year
  • Redemption and withdrawal fee:
    • Maximum 75 euro (indexed)
    • 5% of the amount of the redeemed gross reserves

Read full details about fees in the Product sheet Scala Free Pension

Important documents

It is necessary to read the 'Productfiche Scala executive voor zelfstandigen' before purchasing, subscribing, accepting, signing or opening an NN Scala executive contract;

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Productfiche Scala free pension

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Algemene voorwaarden Scala

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Fondsengamma tak 23 Scala zelfstandigen

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Tak 21 beheersreglement

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Tak 23 beheersreglement Scala

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Document van voorafgaandelijk akkoord voor een storting boven 990 euro (pensioensparen) 

Legal information

  • With a VAPZ policy you save in Branch 21 and enjoy a capital guarantee. You can invest any shared profits in Branch 23.
  • Applicable law: Belgian law
  • The minimum term is 5 years. Payout of the policy takes place at the earliest at the time you take your statutory retirement. This is determined by law. Currently, that age is 65. From 2025, retirement age will rise to 66 and then to 67 from 2030.
    If you took out your policy before 1st January 2016 and were born in 1961 or earlier, then transition rules apply: under certain conditions you have the option of requesting your capital before reaching retirement age. Your broker can look at this with you in detail.
  • Before you sign up as a customer for the NN Strategy product it is important for you to go through the documentation about this specific product. See the documents under “Important documents” on this page.
  • The supplementary pension payout must be settled at the time the self-employed person actually takes retirement.
    If the self-employer worker does not retire until after the statutory retirement age, then he or she can choose when settlement of the benefits and the reserve should take place: either at the time of reaching the statutory retirement age or on the actual date of taking retirement.
  • Exclusions and restrictions: For this product, the Branch 23 portion is not suitable for US Persons. In relation to the Branch 23 portion, NN Belgium does not act under the supervision of the US regulator, the SEC. Click here for more information. 

 

If you have a complaint about your NN policy, please contact NN, Quality Team, 38 Fonsnylaan, 1060 Brussels. Send an e-mail in the first instance to klachten@nn.be. Or contact the Consumer Ombudsman Service at the Insurance Ombudsman, 35 de Meeûssquare, 1000 Brussels. Tel: +32(0)2 547 58 71, fax: +32(0)2 547 59 75, info@ombudsman.as, www.ombudsman.as. It is also possible at all times to take legal action.

Your unique life deserves a personal approach. That is why we are happy to help you find an independent broker in your area