How to claim and collect your supplementary pension benefits? What about your state pension or hospitalisation insurance? Find out everything you need to know here.
Your benefits with the MyAG Employee Benefits app
Register and log in to MyAG Employee Benefits app to find out more.
You can then take advantage of its many benefits, including:
- detailed information about your covers and benefits as well as any changes in the status of your group insurance
- the projected net benefit amount that you'll be entitled to collect when you retire
- your group insurance-related information and documents such as your benefits statements
On this page:
Step 1: Claiming your state pension
When will you be eligible for statutory retirement?
Statutory retirement age in Belgium is currently 65 (with the exception of certain occupations subject to other rules). Your official retirement date is set on the first of the month following the day you turn 65. In other words, if your birthday is in February, you'll be able to retire on 1 March. The federal government, however, decided to raise the retirement age to 66 as of 2025 and 67 as of 2030.
You can apply for early statutory retirement if you fulfil certain minimum age and years of service requirements.
Minimum age and years of service required for your desired early retirement date
- 60 years old and 44 years of service
- 61 years old and 43 years of service
- 63 years old and 42 years of service
Winding down your career
Retirement doesn't have to be an abrupt change from a full-time job to a life of leisure. Some people switch to part-time employment, take a career break, etc. While these alternative paths into retirement are very popular, they do come with certain consequences for your statutory and complementary pension entitlements.
How to claim your state pension?
- If you retire at the age of 65:
You don't need to do anything. The National Pension Office (NPO) will automatically take all the necessary steps for you. - If you retire before or after the age of 65:
you will need to file an explicit request if you're planning to retire before or after statutory retirement age If you fulfil the age and qualifying years of service requirements, you may file your request to claim your benefits at your local municipal hall, directly with the NPO or online at www.mypension.be, up to one year before your chosen retirement date.
Not ready to quit working?
Just because you've reached statutory retirement age doesn't mean that you have to (completely) stop working. Maybe you'd rather keep on working? Over the past few years, the federal government has put incentives in place to keep people on the job beyond statutory retirement age:
- If you are 66 years old or have 45 years of service under your belt, you may continue to work as much as you want without affecting your pension entitlements.
- If you are under 66 or have less than 45 years of service, you may continue in paid employment after you retire. However, the income you earn from this activity must remain below certain maximum caps.
- These maximum caps have been set based on criteria such as your age and years of qualifying service as well as marital/family status, job profile, etc.
- If you earn more than these upper limits, your state pension for that calendar year will be reduced proportionally or even suspended if the earnings are more than 100% above the limits. For example, if you earn 20% above the limit, you'll have to pay 20% of your state pension back to the federal government the following year.
To find out more about working after retirement, go to the National Pension Office website.
Need a Certificate of Insurance? You can easily request it via the MyAG Employee Benefits platform or the app. More information is available in this "Practical Guide".
Step 2: Collecting your supplementary pension benefits
When can you claim your group insurance proceeds?
As payment of your supplementary pension benefits is linked to your state pension, you'll collect your supplementary pension when you retire, i.e. on your statutory (early) retirement date.
In some cases, you'll be allowed to draw on your group insurance proceeds earlier. To find out whether you qualify, it's best to check with your employer directly.
What steps do you need to take to collet your group insurance proceeds?
The NPO will notify us of your retirement date. Once we have this information, we can initiate the different steps to release your group insurance entitlements to you.
The video below walks you through the various steps.Please note that MyAG Employee Benefits (www.MyAGEB.be) replaces "My Global Benefits". The new name has not yet been updated in all videos. We apologise for the inconvenience.
Two and a half months before you retire, we'll send you a letter outlining the practical details for collecting your group insurance entitlements. Note, however, that we can only stick to this timeframe if the NPO sends us all the necessary information on time.
In this letter, we'll explain the payment procedure, the formalities you'll need to complete, and the options for sending us the information we need to release the payment. You can send us this information online via MyAG Employee Benefits, by e-mail or by ordinary mail. However, the online method via your computer and our secure MyAG Employee Benefits platform remains the simplest and most effective method.
How do you know if you're eligible for more favourable tax treatment on your supplementary pension proceeds?
If you were "actively employed" until your statutory retirement date (currently age 65) or have 45 years of service under your belt, you are eligible for a lower tax rate.
See this form for more details on the concept of actively employed.
Once the administrative formalities have been completed, AG can start the payment process.
How much will you collect?
On our MyAG Employee Benefits digital platform, you can check the size of your supplementary pension benefits that have accrued to date. All you have to do is click on "Details", and under "Accrued reserves", you'll see the amount that you'll be entitled to claim when you leave your employer.It is best to use your computer to take the necessary steps to claim your supplementary pension benefits on MyAG Employee Benefits.
Keep in mind that this is the gross value of your group insurance benefits, including profit sharing. In most cases, you can expect to take home roughly 80% of this amount after taxes.
At the time of payment, certain taxes will be deducted from the gross benefits such as withholding tax, an INAMI/RIZIV contribution and a solidarity contribution. These deductions represent roughly 20% of the total value. For a complete overview of the tax implications, go to the "Tax implications for your group insurance proceeds" page.
Lump sum or annuity?
Your pension plan regulations stipulate how you can collect your supplementary pension benefits:
- as a one-time cash lump-sum payout
- or as a regular annuity for the rest of your life
Tip: Tax treatment will vary depending on whether you collect your supplementary pension benefits as a one-time cash lump-sum payout or as a regular annuity.
Lump sum
Taking the amount as a one-time lump-sum payout is by far the most common option in Belgium. You simply collect the entire cash lump sum on your retirement date, less any withholding tax.
Annuity
If you take your group insurance proceeds as a lifetime annuity payment, you essentially get an additional source of income on top of your state pension. Payment frequency for this annuity can be monthly, quarterly, semi-annually or annually.
Tip 2: if you opt for a lump-sum payout, you can convert these proceeds into a regular annuity at a later date. In this case, you'll be subject to a different tax regime than the one applicable to an annuity and specified in the group insurance regulations.
Not a Belgian resident?
If your tax home or seat of wealth is outside of Belgium, AG is required by the Belgian tax authorities to deduct withholding tax at the time your supplementary pension benefits are paid out. This is not the case, however, if you fulfil both of the following criteria:
- You are a resident of a country that has signed a double taxation treaty with Belgium.
- At the time of payment of your supplementary pension benefits, you are taxable in this country.
If you fulfil these conditions, please fill out the "Payment of group insurance benefits in a foreign country" form.
To find out whether there is a double taxation treaty between Belgium and your country of residence, we recommend that you contact Belintax on +32 (0)2 57 634 70 or by e-mail at belintax@minfin.fed.be.
Taken out an advance or pledge against your group insurance benefits?
If you've taken out an advance on your supplementary pension and fulfil the criteria below, you'll only be taxed when your group insurance proceeds are paid out in full.
- You've taken out an advance against your group insurance benefits to purchase, build, renovate, remodel or repair a home.
- This property is located in the European Economic Area.
- It is your sole and unique residence.
- This home is exclusively for your personal use and that of your family members.
When you cash out of your group insurance plan, the proceeds are normally subject to a one-time tax. But if you take out an advance or pledge against your group insurance benefits, your tax liability can be spread out over time in the form of a theoretical annuity:
- 1 to 5% of the borrowed amount (depending on your age at the time you take statutory retirement)
- For 10 or 13 years
Up to a maximum cap (EUR 93,620 in 2023)
Important!
If you remain actively employed until your statutory retirement date, you'll be taxed on 80% of the amount you borrowed, up to a maximum cap (EUR 93,620 in 2023).
If you pass away prior to collecting your supplementary pension benefits, your beneficiaries will also be taxed through a theoretical annuity.
In the year following the payment of your proceeds, AG will send you a tax statement that you can use to fill out your income tax declaration.
The definitive tax rate applicable to your group insurance proceeds will be determined based on this declaration. This declaration also serves to determine the municipal tax due on your group insurance proceeds (this tax varies according to the municipality where you live).
Questions?
We understand that this information can seem complicated. If you have any questions, feel free to contact us via our contact form (top and bottom of this page). We'll get back to you as soon as we can.
Step 3: Continuing your hospitalisation coverage
Your corporate-sponsored coverage
When you retire, you'll not only be foregoing a monthly salary. It may also mean the end of your corporate-sponsored hospital plan, as many employees also have additional insurance coverage through their employer.But we can reassure you right away that you won't be left without a safety net. The legislation gives you the right to continue your corporate plan on an individual basis with the same, if not better, covers.
How to take out continuation coverage on an individual basis?
Your employer will inform you of the option to sign up for individual continuation coverage within 30 days of losing your corporate plan. You'll then have another period of 30 days to apply for individual coverage with your insurer. Make sure you apply by the deadline in order to keep the same covers.
If your previous corporate-sponsored hospital plan was with AG Employee Benefits, you can apply for continuation coverage by contacting continuation@aginsurance.be or by filling out the appropriate form.
Step 4: Reinvesting your group insurance proceeds
Retirement marks the beginning of a new chapter in your life. On the downside, you lose the security of a monthly paycheck. While there's always your state pension to fall back on, it's generally not enough to maintain your pre-retirement lifestyle. If your employer has had the foresight to take out a group insurance plan for you, you can cash in on this extra nest egg when you retire.
Before you retire, figure out for yourself how much you'll need to retire without worry or regret. Once you've monetised all these factors, you'll have a ballpark figure of how much you'll need to live the rest of your days in comfort. You may decide that you don't need to use any or just a small portion of your group insurance proceeds to achieve your retirement goals. If this is the case, reinvestment may be a good option for you.
Reinvesting your group insurance proceeds
Once they retire, many people opt to reinvest some or all of their group insurance proceeds as an opportunity to further grow their nest egg.
If you want to go this route, there is a vast array of investment products to choose from. For example, investment funds are very popular and often a wise choice. At AG, we offer all kinds of possibilities, depending on your investor profile. Some of the best known vehicles are Branch 21 and Branch 23 insurance products.
- The main benefit of a Branch 21 fund is the security of a guaranteed return. Profit sharing may be awarded as well, but this is optional depending on the results achieved by the insurer. Branch 21 is therefore a safe haven option if you're rather risk averse when it comes to investing your retirement nest egg.
- If you're willing to take on more risk, you may want to consider a Branch 23 insurance product, where your premiums and capital are invested in one or more funds with varying degrees of risk. It's up to you to decide how and where you want your premiums invested according to your risk appetite. The return on your invested capital will depend on fund performance.
In exchange for the higher risk associated with a Branch 23 investment and the fact that there is no guaranteed return, you get the potential for a greater return on investment.
If you were enrolled in a group insurance plan with AG Employee Benefits & Health Care, you can use the services of AG Ascento, AG Employee Benefits' end-of-career solutions provider, to reinvest your retirement benefits.
AG Ascento has come up with three solutions with varying investment horizons to further grow your supplementary pension nest egg.
Intrigued? Want to find out more? The AG Ascento team is standing by to provide you with individually-tailored reinvestment recommendations.
- Call 02 664 82 07
- Send us an e-mail at ascentosales@aginsurance.be