Almost 1 in 10 Belgians continue working after reaching the statutory retirement age. Sometimes for the money, sometimes to socialise. Are you considering doing the same? If so, first get a clear picture of the whole situation, including your insurance policies.
Why continue working after retirement?
Continuing to work after the statutory retirement age has many advantages:
It gives your life structure and purpose.
Social contact: you continue to socialise.
Financial benefits: extra income helps you maintain your standard of living, now that everything is becoming more expensive but you have to make do with a more limited income.
You get the opportunity (with less pressure) to do a job you always wanted to try, turn your passion into your (side) job or do work that gives you personal satisfaction.
How much can I earn as a pensioner?
You want to work, but you don't want to end up with a financial hangover as a pensioner. Before you start, you want to know how much you are allowed to earn and what that extra income means for your pension and your taxes.
Generally speaking, you can earn unlimited extra income from 1 January of the year in which you turn 65, without this affecting your statutory pension. This also applies if you are younger but have worked for 45 years at the time of your retirement.
If you retire earlier, there is a maximum amount you are allowed to earn. The exact figure depends, among other things, on your family situation and the type of pension you receive. Check with the Federal Pension Service for the correct limit, because if you exceed it, you may receive a lower pension.
You should also take personal income tax into account. All your income is taxed together, which may put you in a higher tax bracket. If you put all this information together, you will quickly see how much you will have left after tax and whether it is worth it. On the government website, you can simulate how much tax you will have to pay
As a self-employed person, you also pay social security contributions on your income, although these are lower than for your pension.
Check these insurances
- Accident insurance. If you are an employee, your employer's insurance protects you in the event of accidents during your job.
Hospitalisation insurance. Do you have this through your employer or do you have to arrange it yourself?
Liability insurance. If you work as a self-employed person after retirement, even if it is part-time, you are liable for any damage you cause to others or their property. Professional liability insurance is not an unnecessary luxury, just like legal assistance insurance .
Car insurance. If you use your car for extra income, you may be driving more kilometres or driving in different circumstances. It may be necessary to adjust the risk profile in your policy.
The fact that you continue to work has no impact on your pension savings insurance. However, you will normally no longer need guaranteed income insurance . Because you also receive a pension, you will not be left without an income if your extra income disappears.
In short: working as a pensioner can be very valuable in many ways. But before you start, take a closer look at more than just the net income it will generate. Find the right information about what continuing to work means in your specific situation.
