Have you changed employer several times? Have you worked as a self-employed person for a number of years? There are many reasons why you have accrued less pension. You then have a pension gap (pension deficit). Do you still want to have sufficient financial resources after retirement? Then you could consider saving to the bank. Bank saving offers the possibility to build up a supplementary pension. Do you have a pension gap? Then you have to calculate the annual margin. You then calculate the amount that you can save with a tax benefit. Your contribution to the pension bank savings account must fall within that annual margin.
Rules about bank savings
Do you want to supplement your pension through bank saving? Then you should not only take your annual margin into account. You can only take out a bank savings account with an institution recognized by the Tax Authorities. You can find all recognized institutions by consulting the website banksparen.nl. Another rule is that the bank savings account may only be used as a supplement to the pension. Moreover, premature termination is not possible. The bank savings account is in your name and only pays you.
Benefits bank saving
Supplementing your pension through bank saving has a number of advantages. Some advantages may be known, because they also apply to annuity insurance.
Bank saving has a tax advantage if you have a pension deficit, because the annual contribution can be deducted from the income tax due. However, upon commencement of the benefit, the tax authorities must pay again. After all, the benefit is taxed again. You usually pay less tax when you retire. That is why there is indeed a tax benefit.
Another tax benefit
Another tax benefit is the fact that the amount in the bank savings account is not counted as part of your assets. So you don’t have to pay wealth tax on it.
The return on the bank savings account, usually the annual interest that you receive, increases the amount invested. The benefit that you receive after your retirement therefore also increases.
Bank saving also has benefits that an annuity insurance policy does not have:
Bank saving has a deposit guarantee scheme. Does the company where you save an amount go bankrupt? Then you will not lose your assets.
Are you dying? Then the balance that you have accrued will accrue to the relatives.
There are also costs associated with bank savings. Those costs are usually lower than the costs of an annuity insurance policy. Are you building up a pension with bank savings? Then it is good to know that bank saving also has disadvantages: Bank saving is less flexible than just saving, because you cannot simply withdraw the saved amount.
The interest that you receive with bank savings may not be sufficient to compensate for inflation.
Did you put in the money yourself? Then you are also obliged to receive the benefit. You cannot therefore designate someone else as a beneficiary.
Saving, bank saving or an annuity insurance?
You will have to make a choice yourself. Do you save or invest yourself? Then you are not bound by all kinds of rules. The savings are freely available. Do you decide to bank savings or to take out an annuity insurance policy? Then remember that you are not in charge of the deposited money. The money is no longer freely available because (high) costs will always be charged.