Search Q&A
Pension and tax
There will almost certainly be tax impications.
The main issue is that (assuming this is a belgian pension scheme), your contributions into the pension would have been tax deductible in the first place, so if you cash out, you will be taxed on the capital value.
And of course, it depends on what you mean by "private pension". There are many different types of pensions, savings, offshore pensions etc, each one will be different.
The other thing you need to be aware of is that (in addition to taxes) you may also be liable for very significant penalty charges, 10-20% on the redemption value, if you stop payments and take the money.
I don't know exactly, as my financial experience in this field relates to the UK and is 20 odd years old, but if anything, the laws in Belgium will be tighter and more restrictive.
My advice is to contact the pension provider and talk to them. It's quite likely that you may find that "cashing out" isn't actually possible. (The government doesn't want people cashing up their pensions and spending the money, only to have to rely on the state later).
Yes, the tax implications are very serious.
You would need to take very serious legal and financial advice before doing this.
If it is a private company pension plan ; only way to take out money is to loan money from it for buying a house .
Only if you reach the final contract age ,(often 60 ) you can take cash; but extra government tax is applied , tax level lowers the older you get .
