Maximise your tax benefits before year-end: 3 smart tips for pension and long-term savings

As the end of the year approaches, it’s the perfect moment to take a closer look at your finances and make sure you’re getting the most out of available tax benefits. Pension and long-term savings aren’t just about building a future nest egg: they’re also powerful tools to reduce your tax burden today.

Below, we share three key opportunities you can still act on before year-end to optimise your tax benefits.

Start early: pension savings for young people

Did you know that pension savings can already be started at 18? The earlier you start, the more time your money has to grow - and you’ll immediately enjoy a significant annual tax reduction.

• Even small contributions, such as €25 per month, can add up to a meaningful reserve later.
• Depending on the amount you save, you can receive up to 30% tax relief per year on your contributions (for dual pension savings plans, 25%).
• You choose how your money is invested, matching your risk appetite - from more secure, fixed-rate products to higher-risk funds with potentially higher returns.

Tip: The younger you start, the more you benefit from the power of compounding and repeated tax deductions.

Turning 55 soon? optimise your pension and long-term savings now

If you’re approaching 55, this is a crucial moment for your pension or long-term savings. Why? Because the timing of your contributions affects when the final tax on your savings will be charged:

• If you start or increase your contract before your 55th birthday, the end tax (8% for pension savings, 10% for long-term savings) is applied on your 60th birthday.
• If you start after 55, the tax is applied on the 10th anniversary of the contract or at payout.

This means that contributions you make between 55 and 60 can grow without being taxed at the end — making it financially much more attractive.

Tip: Now is the time to review your contributions and maximise your tax benefit for the coming years.

Approaching 65? Continue to save and pay less tax

Turning 65 doesn’t mean the end of tax benefits. With long-term savings, you can continue to enjoy an annual tax reduction of 30%, even during retirement.

• The maximum deductible amount depends on your income (including your pension), but it’s up to €2,450 per year.
• Your annual tax benefit can reach as much as €735 per year.
• After ten years, your contract is subject to a one-time end tax of 10%, but you can continue saving afterwards without additional taxes and even make free partial withdrawals.

To qualify, your long-term savings plan must start before your 65th birthday and your net professional income (including pension) must be high enough (usually above €1,400 gross per month).

Tip: Many people miss this opportunity simply because they don’t know it exists. Check now if you still qualify before the year ends.

Plan ahead with S.W.I.S. Insurance

Tax optimisation through pension savings and long-term saving can be complex and depends on your personal situation: your income, family situation, loans, and risk appetite all play a role.

At S.W.I.S. Insurance, we’re happy to review your options with you and help you find the right mix of products to optimise your tax benefits, both today and in the future.

Contact us today to discuss how you can still benefit from tax-advantaged savings before the end of the year.