What are the contribution limits to pension plans?
Taking out a pension plan is a growing trend. After all, it's no secret that having one is likely to increase your chances of a better quality of life and greater financial stability. This explains why more and more people are taking them out in good time to plan for a worry-free retirement.
The maximum you can contribute to a pension plan is 8,000 euros per year.
If you have several pension plans at different banks, or even guaranteed retirement plans, you can still only make a total combined contribution of 8,000 euros in any one year.
If you do exceed this maximum annual amount, you must draw down the surplus by 30 June of the following year to avoid penalty. However, there are some exceptions to this limit:
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Maximum contribution to pension plans for people with disabilities
People who suffer from a disability may make contributions of up to 24,250 euros per year, and their family members may contribute up to a maximum of 10,000 euros per person. In total, the contributions of the main subscriber plus those of their family members may not exceed 24,250 euros.
Maximum contribution to pension plans for spouses
You can contribute up to a maximum of 2,500 euros per year to your spouse's pension plan if they don't have a work-related income or if their economic activities bring in less than 8,000 euros per year. Remember, the maximum you can deduct on your tax return is 8,000 euros per year or 30% of the net income declared from work or other economic activities.
What is the minimum contribution to a pension plan
There is no minimum. All contributions made to a pension plan are entirely voluntary: you, and the financial institution from which you acquire this investment product for your retirement, decide the amount to pay in on a monthly, quarterly or annual basis, and it doesn't have to be for a set period of time. You can cancel your financial contributions whenever you want. There is no law or legal framework governing or supervising minimum investments in pension plans. This means that there is no minimum contribution other than what is stipulated by the entity or manager in the clauses and conditions of the plan taken out.