Your annuity provides a fixed, lifelong income, offering long-term financial stability throughout your retirement.
Your annuity is funded by the net capital from your group insurance and is calculated in accordance with Article 19 §1 & §2 of the Royal Decree of 14 November 2003 implementing the Law of 28 April 2003 on supplementary pensions.
It's up to you to determine the payment frequency: monthly, quarterly, semi-annually or annually. It's always paid in arrears, i.e. at the end of the period.
Your annuity is treated as investment income. As such, it is taxed at 30% on a flat-rate taxable base equal to 3% of the capital converted into the annuity.
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How is AG Ascento Life taxed?
- Premium tax
Normally, the premium to purchase a lifetime annuity is subject to a one-time tax of 2%. However, since the annuity contract is purchased by immediately transferring the lump-sum supplementary pension proceeds, the premium will be exempt from this tax.
- Income tax
Lifetime annuities do not have to be declared as such. The taxable basis will be a flat rate of 3% of the relinquished lump sum. This amount will be considered as investment income, subject to separate annual tax at the current rate of 30% plus municipal taxes.
Your annual tax statement
Every year, AG Employee Benefits will send you Tax Statement 281.40 to help you fill out your tax declaration. This Statement will contain the figures to report as well as the corresponding tax codes. You can then enter these figures according to their tax codes.
To see an example of a Tax Statement for pension plan proceeds: Tax Statement 281.40).
What fees do I need to take into account?
As is the case with any investment, you should factor in the following fees:
- Entry fees: none
- Exit fees: none
- Management fees: none
AG Ascento Life incorporates ESG factors that allow it to make a positive impact on the environment and/or society and to limit negative impacts on the environment and/or society, through an appropriate selection of investments. To find out more about AG's approach to sustainable and responsible investing, go to ag.be/investing/sustainability.
At the bottom of this page, in the legally required and contractual information section, you'll find the Sustainability Fact Sheet for the various funds available for this product as well as the corresponding annual report.
How does AG integrate sustainability risks?
What is a sustainability risk? This is the risk that the value of the investment will decrease if an adverse ESG event or condition should occur. For example, global warming and its potential to trigger more natural disasters. Such events can have a major impact on certain companies, forcing them to make exceptional policy decisions. This can have an impact on investment performance.
AG has developed life insurance solutions that take sustainability risks into account. In addition, as part of our AG Ascento Life service, AG also provides insurance advice for AG products only. This means that sustainability risks are automatically included in the insurance advice you receive. At the current time, sustainability risks have not been tested with regard to your personal investment situation. Due to a lack of data, we are unable to assess the likely impact of these sustainability risks on the performance of our life insurance contracts.
AG also incorporates sustainability risk into its remuneration policy. More information can be found here.
How does AG take adverse impacts on sustainability factors into account?
Statement on Principal Adverse Impacts of investment decisions on sustainability factors
For all of its products, AG's investment policy takes into account the most significant adverse impacts that its investment decisions may have on sustainability factors. When we recommend AG Ascento Life, you have a minimum guarantee that these adverse effects have been taken into account in the products offered to you.
In addition, in order to provide you with individually-tailored advice, we enquire about your needs and your personal situation, including your preferences regarding adverse impacts on sustainability factors. Your answers will have a direct impact on the advice you get from AG.
What are the risks associated with AG Ascento Life?
AG Ascento Life is covered by the Guarantee Fund applicable to Branch 21 products.
If AG Insurance becomes insolvent, this Fund will pay out a maximum of EUR 100,000 per policyholder and per insurance company. For higher amounts, only the first EUR 100,000 will be covered. This means that the remaining portion may be lost, in part or in full.
Choosing a lifetime annuity means opting for an irreversible conversion of your capital: no surrender is possible, and if the annuitant passes away, the contract ends and no capital is refunded.
Legally required and contractual information
Check the legally required information for our insurance contracts!
- How does AG handle potential conflicts of interest?
- What segmentation criteria does AG apply for acceptance, scope of coverage and pricing?
- Who do I contact if I want to file a complaint?
Please read the General Terms and Conditions before purchasing the product. They are available free of charge upon request.
All of our insurance contracts are governed and construed in accordance with the laws of Belgium.