What is pension investing?

Pension investing is investing your money for the future with a tax advantage. It works through a blocked account on which you build up fiscally-friendly capital for your retirement. For entrepreneurs and employees who arrange their own pension, it is the most efficient way to build up capital. You immediately get a portion of your deposit back via tax (up to a maximum of the rate of the second tax bracket), you pay no wealth tax on your accrued pension and your money is professionally invested for potentially higher returns than saving. We explain what pension investing exactly entails and how it works, from the first deposit to the payout.

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What exactly is pension investing?

Pension investing is the process of building up a pension by investing in shares, bonds and other investment products via a special pension account. Unlike regular investing, your money is locked in until your pension, but you receive tax benefits in return. Your deposit is deductible from your taxable income within your annual scope (jaarruimte) and reservation scope (reserveringsruimte). The accrued capital falls under Box 1 instead of Box 3, which means you do not pay wealth tax. With pension investing, your money is invested across different markets and sectors to limit risk. The goal is to achieve a higher return over a long period than with saving, whereby the chance of a positive return increases the longer the investment horizon is.

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How pension investing works during the accumulation phase

The accumulation phase of pension investing starts as soon as you open a pension account and make your first deposit. You decide how much and when you deposit, as long as it stays within your fiscal scope. At Vive, this works completely digitally: you open an account via the app, set your pension goal and start depositing. The deposited money is automatically invested according to a strategy that suits your age and risk appetite. Young means more risk for potentially higher returns, older means security first. The system automatically rebalances to maintain the correct distribution between shares and bonds. In the app, you see real-time how much you have deposited, what the current value is and what your expected final capital will be.

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How pension investing works in terms of tax advantage

The tax advantage makes pension investing extra attractive. Every euro you deposit within your annual scope can be deducted from your taxable income. In 2025, you receive a maximum of 37.48% of your deposit back via the tax return - the rate of the second tax bracket. For lower incomes, this is 35.82% in the first bracket. Additionally, you pay no wealth tax on your pension accrual because it falls under Box 1 instead of Box 3. With capital of €100,000, this can save hundreds to around one thousand euros per year in tax. Later, upon payout, you do pay income tax on your pension. But because your income is usually lower then and you no longer pay AOW (state pension) premium, the rate is often more favourable than during your working life.

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Risks and returns in pension investing

Pension investing entails investment risk: the value of your pension can fluctuate and may even fall in the short term. In bad stock market years such as 2022, pension investments can fall by 10% or more in value. This is the difference compared to pension saving, where you get a fixed interest rate but no chance of extra return. However, historically, investments almost always yield more than saving over the long term. Over periods of twenty years or longer, the average return on shares has historically been around 7% per year. At Vive, the risk is automatically reduced as your retirement approaches: from mainly shares at a young age to more bonds just before your retirement. This way, you benefit from growth potential when you have time and from security when you need the money.

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How pension investing works upon payout

The payout phase begins when you retire, usually around your AOW (state pension) age. You cannot simply withdraw your entire pension pot - it must be done via a payout product. This can be a temporary payout or a lifelong payout, depending on your preference and situation. The payouts are taxed as income, but often at a lower rate than during your working life. In the event of death, the remaining capital goes to your partner or heirs. They can then have it paid out according to the rules. At Vive, we guide you through the transition from accumulation to payout, so that you make the best choice for your situation.

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For whom is pension investing suitable

What is pension investing worth to you? That depends on your situation. Pension investing is especially suitable for self-employed persons (zzp'ers) and entrepreneurs without a pension scheme via an employer. They often have the full annual scope at their disposal and can benefit maximally from the tax advantage. Employees with a pension gap can also save extra for later through pension investing. Directors and major shareholders (DGA's) who want to build up a flexible pension in addition to or instead of an 'in-house' pension find a modern solution in pension investing. For everyone, the following applies: you must be willing to accept some risk and have a long-term horizon of at least ten years.

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Why pension investing works differently via Vive

At Vive, we make pension investing personal and accessible. Where many providers work with standard profiles (defensive, neutral, aggressive), at Vive you get a tailor-made strategy. The system calculates thousands of scenarios to find the perfect mix for your situation. Everything happens in one app: from deposit to insight, from strategy to payout. You see exactly how much you have, how it is growing and what you can expect. The main costs are €7.50 per month plus a 0.35% management fee per year. In addition, you pay the usual fund costs, which Vive transparently lists on the rates page. Pension investing thus becomes simple and transparent, without you making concessions to quality or return.

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