The Belgian pension system has three main pillars: 1) a state pension organised as a career average revaluated earnings defined benefit scheme, 2) occupational pension schemes organised at the level of the company or of the sector of activity, and 3) individual pension schemes.
First pillar: state pension
There are 3 main systems for the state pension: one for private employees, one for public servants and one for self-employed.
State pension normal retirement age is currently still 65 but will gradually increase to 67.
All three systems are career average revaluated earnings defined benefit schemes.
Second pillar: occupational pension schemes
The occupational pension schemes are organised at company or sector level.
Like in many countries, there has been a transition from DB schemes to DC schemes. Belgian DC schemes are however classified as DB by international accounting standards, because the organizers have to guarantee a minimum return on contributions.
Most of the schemes are insured ones, although the larger employers may also use a pension fund.
Third pillar: private provisions
Individuals can invest in an insurance product or in a mutual fund and get a significant tax reduction on the amounts invested.