As an entrepreneur, you think about today. About turnover, growth and freedom. But is there also a plan for the time when you no longer want to work? What if you stopped tomorrow? Would there be anything to fall back on?
Research shows that only 1 in 3 self-employed people actively build up a pension. The rest rely on: ‘I’ll look into that later.’ But let’s be honest: when exactly is ‘later’ the right moment? If you don’t take action, you don’t build anything up either. No employer automatically putting something aside for you, no pension fund saving up interest for you for years, and sometimes ‘later’ still comes too soon.
Fortunately, sorting out your pension doesn’t have to be complicated, boring or time-consuming. In fact, it can often be surprisingly simple. In this blog we give you three practical pointers for building up your own pension as an entrepreneur. So that your freedom now doesn’t have to cost you your freedom later.
1. Annuity saving or investing
Since 2023, the old tax old-age reserve (fiscale oudedagsreserve, FOR) has been abolished, but another arrangement has come in its place. As a self-employed person, you can set aside a sizeable part of your profit through an annuity (lijfrente) product, such as bank savings (banksparen) and pension investing. You can deduct that amount from your taxable profit, so you pay less tax while saving for later.
More and more entrepreneurs are opting for pension investing. You open a special investment account and pay in an amount every month or every year. That money is invested in diversified funds with the long term in mind. No guarantees, but usually a good return if you patiently let it grow. What’s more, you can only withdraw it once you retire, so there’s no temptation to ‘just dip into it’ in the meantime.
Still, investing isn’t for everyone. If you prefer certainty, bank savings are a safe alternative. Lower returns, but no ups and downs either. What counts most: that you start somewhere.
2. Investing in your business
We hear it from lots of entrepreneurs: ‘But I want to invest in my business first.’ That makes sense, and it’s not a problem either. Some entrepreneurs also see their business as their pension. Your knowledge, your network and your visibility are valuable assets. Property can also deliver a good return and provide security.
However, this is not an automatic pension. Your business can change, markets can shift, property can stagnate or start costing you in maintenance. That’s why it’s wise to combine investing in your business or premises with something that genuinely builds up pension wealth. Something that doesn’t depend on how busy you are or how well your business is doing.
3. Start small: it’s not about thousands of euros a month
The idea of building up a pension quickly sounds as if you have to put aside hundreds of euros every month, but there’s no need for that at all. Start with what you can spare each month. Maybe that’s €50 or €100. Transfer it automatically and check it a few times a year.
It may feel like a drop in the ocean, but it’s precisely by starting small that you make room for bigger steps later. Pension isn’t about perfect planning, it’s about choosing consciously and simply getting started. Because let’s be honest: doing nothing is a choice too, just one that may well come back to bite you later.