The Belgian government encourages pension saving with a 30% tax reduction on yearly contributions. Argenta, like other Belgian banks, offers pension saving products that let you claim this benefit while building your retirement nest egg.
However, behind the tax advantages lies a complex decision. Should you choose Argenta's fund or insurance product? And more importantly, are these products delivering the returns you need for retirement, or are they mainly beneficial for the bank?
This article walks you through Argenta's pension saving options, their real performance after fees, and helps you decide if they deserve a place in your financial plan. We'll also explore why many forward-thinking Belgians are complementing their pension saving with ETF investments for better long-term results.
Argenta's pension saving products
Argenta offers two pension saving products:
- Fund: Argenta Pension Fund
- Branch 21 pension saving insurance plan: Argenta-Flexx
The Argenta Pension Fund is an investment fund designed specifically for pension savings. You make regular contributions to the fund, and Argenta invests them in shares, bonds, and other financial instruments.
Argenta-Flexx is a branch 21 insurance product, which means it’s a life insurance policy that includes a savings component. It provides a guaranteed return, possibly supplemented by a profit-sharing bonus.
Review of the Argenta Pension Fund
This fund invests in a mix of shares and bonds.
How your savings are invested
The Argenta Pension Fund invests about 65% in equities (stocks) and 35% in bonds, with some fluctuations depending on the market. The fund is actively managed, meaning the fund managers at Argenta make investment decisions based on their market analysis and expectations to achieve better investment results. This creates a more growth-oriented approach to investing your pension savings. The Argenta Pension Fund is also managed with responsible investing principles in mind, following ESG (Environmental, Social, Governance) criteria.
Historical performance
The historical performance of the Argenta Pension Fund reflects this approach. Over the long term, it has delivered some solid returns. The level of volatility is moderate, thanks to the diversified investment strategy.
When compared to other pension saving funds, the historical performance of the Argenta fund has been the best:
Fees
The Argenta Pension Fund has fairly high fees compared to other Belgian pension saving funds. You pay an ongoing fee of 1.44% annually for Argenta to manage the fund. However, they don't charge an entry fee, which is fairly unique. Other providers charge you a percentage, most commonly 3%, for every deposit you make.
These fees are slightly lower than some other major banks but still significantly higher than index-based ETFs (more on that below).
Review of Argenta-Flexx (branch 21 insurance plan)
How your savings are invested
With Argenta-Flexx, your savings are invested in Argenta Insurance’s general investment portfolio. This portfolio is conservative and focuses mostly on fixed-income investments such as bonds and mortgage loans. The goal is capital preservation and stable growth over time.
What’s the insurance?
As a branch 21 product, Argenta-Flexx comes with life insurance coverage. If you pass away before the contract ends, your beneficiaries receive the value of the plan, along with a small extra amount. This type of product is intended for those who want both savings and security.
Historical returns
Returns on Argenta-Flexx are guaranteed but modest. In 2023, the base return was 1.75%. If we look further back, it has delivered an average 1.40% to 1.80% per year between 2017 and 2022. However, with inflation at around 2%, real returns were negative. So you're effectively losing money and purchasing power by keeping your retirement savings in an Argenta-Flexx plan.
Fees
Argenta-Flexx charges an on-going fee of 0,27% annually on the first €7,500 you accumulate. It's free for any additional savings. However, the kicker is that you pay 4% in entry fees for every contribution you make.
Pension saving fund vs branch 21 insurance plan
Both Argenta products offer the tax advantages of Belgium’s pension saving scheme. But there are clear differences:
Which suits you best?
The confusion is understandable as both products are offered as “pension saving”. But picking the right one matters for your financial future.
A pension savings fund might be better if:
- You’re still young with a long investment horizon
- You’re comfortable with taking on some investment risk
- You want more control and transparency
A branch 21 insurance plan might be better if:
- You prefer stability and protecting your money as much as possible
- You’re nearing retirement age
- You want peace of mind with guaranteed returns
Benefits of Belgian pension saving
Belgium’s pension saving scheme offers two key advantages:
- Tax savings: You receive a 30% tax deduction on contributions (up to €1,350 per year in 2025).
- Motivation to save: Banks like Argenta make it easy to start, helping Belgians build up savings for their retirement.
Still, the system has its limits. Most importantly, it’s not enough on its own to secure a comfortable retirement.
Why pension saving likely isn’t enough for a good pension
We ran a simulation to calculate how much pension saving yields at the age of 65 when the scheme ends. A 30-year-old contributes €1,350 every year until age 65. We simulated each of the Argenta pension products to see the returns:
Even with the more profitable Argenta Pension Fund, you’re only looking at only €260 per month in real terms. That’s a nice boost, but far from a liveable retirement income.
Other downsides of Belgian pension saving
Your savings are locked until you're 60
Withdrawals before the age of 60 are penalised with a steep 33% tax penalty. It’s meant to encourage long-term saving, but it also means you lose flexibility.
Pension saving funds are costly
Argenta’s fees aren't the lowest on average. On top, Belgian pension funds are expensive compared to other types of funds like ETFs. That’s why they’re heavily promoted by banks as they’re so profitable for them but not necessarily for you.
Contribution limits are restrictive
You can’t save more than the yearly limit, which is €1,350 in 2025. As we've seen in the simulation, if you want to build serious retirement savings, you’ll need to invest outside the pension saving system too.
Secure your pension with ETF investing
We now know pension savings alone isn’t enough. So what can you do? At Curvo, we believe the best answer is index-based funds and ETF investing.
ETFs have higher returns
Over the past 20 years, global stock ETFs have outperformed Belgian pension saving funds. A simple ETF tracking the MSCI World Index has beaten the Argenta Pension Fund.
Why is this?
- Lower costs: ETFs have expense ratios around 0.2%, while pension funds charge over 1%.
- Fewer restrictions: Belgian pension funds must limit stock exposure and invest mostly in Europe. ETFs are global and can go fully into equities.
- Better diversification: Global ETFs invest in thousands of companies. Pension funds often focus on a few hundred, mainly in Europe.
No limit to how much you can invest
ETFs let you invest as much as you want. Unlike pension saving funds, they don’t have contribution limits. ETFs fit your budget, whether you invest €5,000 or €50,000 in a year. They help you build wealth based on your own income and goals.
An ETF is simple and transparent
The straightforward nature of ETFs makes them simple to understand and manage. With a single share of an ETF, you own a slice of the global economy that automatically rebalances as companies grow or shrink. There's no need to analyse complex fee structures, understand insurance components, or decipher complicated product documentation.
Curvo, the easiest way to invest in ETFs
The difficulties of managing your own portfolio of ETFs
Choosing a single ETF is usually not the entire story when investing your life savings. Stocks are risky. Not everyone can handle their ups and downs. To bring success over the long term, you need to build a portfolio of ETFs that suits your goals, your appetite for risk and your capacity for taking risk. But this is not an easy task, as there are thousands of ETFs to choose from. And this portfolio of funds must stay balanced over time and adjust to changes in your life. On top of that, it's important to understand the tax implications of investing. When managing your own portfolio, these responsibilities fall onto you.
We saw most of our friends not investing because of these difficulties. They tried at first, but then they stopped. They didn’t trust themselves to make good financial choices for the future. Others couldn't bring themselves to learn the tax intricacies of investing. Yet, we believe that investing in ETFs or index funds is a powerful tool to improve our financial well-being. That's why we built Curvo: to take care of all the complexities of good investing so you don't have to worry.
Investing without hassle
Curvo addresses the challenges of managing your ETF investments yourself:
- Portfolio built for you. We ask you a few questions at the start to learn about you and your goals. Based on your answers, we match you with the best portfolio for you.
- Diversification. We firmly believe diversification lowers risk and boosts investment returns. That's why each portfolio consists of over 7,500 companies, diversified across sectors and countries.
- Invest sustainably. The Curvo portfolios follow one key rule: avoid companies that harm the planet. Sectors like non-renewable energy, vice products, weapons, and controversial companies are all excluded.
- Rebalancing is done for you. No need to worry about keeping your portfolio in balance.
- Fractional shares. All your money is invested. There’s no cash left sitting on the side.
- Automated monthly investing. Set up your monthly plan and get peace of mind that your money is working for you.
- Start from €50. There's no need for a large lump sum to get started.
- Project your savings into the future. The app allows you to see how much you can expect your portfolio to be worth in the future. You can ask questions like, “How will adding €50, €100, or €200 to my monthly savings affect my future?” This helps you imagine the “future you.”
- Withdraw anytime. There are no long-term contracts or exit fees if you wish to stop investing.
Conclusion
Looking at Argenta's pension saving products, we can see they offer valid options for Belgians wanting to reduce their tax bill while saving for retirement. The Pension Fund stands out with its strong historical performance compared to competitors, while the Flexx plan caters to the more risk-averse investor.
However, we've uncovered a crucial point: even diligent pension saving alone won't give you a comfortable retirement. The simulation shows that after 35 years of maximum contributions, you might only have €260 in monthly income. That's why we believe in building a broader investment strategy that includes global ETFs with their lower costs and wider diversification.
As you consider your options, think about how you can balance the tax advantages of pension saving with the growth potential of ETF investing. Apps like Curvo can help you navigate the complexity of building a proper ETF portfolio while keeping things simple and accessible. Whatever you choose, taking action now will have a massive impact on your financial future.