What does it mean? 🤔
Individual pension savings is a form of long-term saving, intended to build up an additional pension on top of the statutory pension provisions.
In many cases, individual pension savings offer tax benefits. Contributions can be tax-deductible up to a certain annual maximum amount, meaning you pay less income tax.
💡 By investing your Payflip budget in pension savings, you strengthen your pension fund and optimize your Payflip benefits. 💰
⚠️ This is a partial reimbursement of your individual pension savings through your flex plan.
⚠️ Payflip does not contact your bank and does not finance your pension savings.
How does it work? 🔄
It is important that you participate in individual pension savings via your bank or insurance broker.
Step by step to reimbursement of your individual pension savings:
Choose reimbursement of individual pension savings under 'Cash & Savings' in your Payflip tool.
Upload your proof: Upload your tax certificate (tax certificate 281.60). 📜
Enter the desired amount: Enter the savings amount from last year (up to the maximum limit).
Add your choice to your shopping cart and confirm.
Your employer approves.
You receive the amount with your next salary.
⚠️ Financial limits for 2024 (Input in Payflip in 2025) 📊
€1,020
€1,310 (maximum amount)
💡 You can also request a partial reimbursement if you do not have enough budget to claim the maximum amount.
Financials 💰
The budget impact for this choice is calculated as follows:
Pension savings amount + 8.86% special employer social security contribution.
Example: Saving €1,020 will cost about €1,110 from your Payflip budget (€1,020 + (€1,020 × 8.86%)).
The advantage is that the employee does not have to pay employee social security contributions on this amount; however, withholding tax is still due.
This results in a higher net benefit compared to a regular cash payment.
Example
Let’s take the example where you request a pension savings reimbursement for €1,020.
If you opt for a cash payment, you’ll keep about €370 net after all deductions.
If you opt for a payment via individual pension savings, you’ll keep about €480 net after all deductions (only withholding tax).
💸 In this example, the financial benefit of a reimbursement for individual pension savings is about €100 net.
Proof & Tax Certificates 📄
Your official proof comes in the form of tax certificate 281.60 via MyMinfin. It is important that your name appears on the certificate and that it concerns the saved amount from the previous calendar year.
💡 You can still benefit from the tax advantage for individual pension savings.