31 March 2016
I am self-employed: what are the specificities about my pension?
Just as for salaried employees and civil servants, the statutory pension age for the self-employed is 65, with the option of taking early retirement.
But what’s the difference between a self-employed worker’s pension and other occupations?
How much pension will you have?
The criteria taken into account to determine your statutory pension are the same as for a salaried employee: length of career, work income, etc. But since social security contributions are lower for a self-employed person, an adjustment coefficient is applied when calculating the pension. In simple terms, a self-employed person's pension will generally be less than pensions paid under other employment schemes.
It is therefore vital to think ahead, so that your pension income will be enough during this new stage of your life. To start with, assess your future financial requirements using this simulator. Then check whether these requirements can be covered by your statutory pension. If not, then it is time to consider a suitable fiscally favourable solution, such as:
- a private supplementary pension plan for the self-employed, with the option of claiming back, in tax terms, up to 50% of premiums invested, but also reducing your social security contributions.
- an individual pension investment for company directors if you work on a self-employed basis for a company. In certain circumstances, this solution means that your company can deduct 100% of premiums paid without these premiums being taxed as benefits of any kind.
Start preparing for your retirement now
Start saving for your pension today so you can enjoy life to the full later down the road!