PRODUCT ANALYSIS — PENSION SAVINGS
Belgium's most popular pension savings fund. Let's unpack what the brochure doesn't say.
IN BRIEF
KBC Pricos charges 2% upfront + ~1.41%/year in management fees. Over 30 years of contributions at the tax maximum (€1,050/year), this costs you more than €44,000 compared to a Global ETF — that's 140 times your annual tax benefit of €315. If you are under 45, this product destroys your long-term wealth.
Your banker's pitch is compelling: invest 1 050 € per year, the State refunds you 315 € via your taxes — an immediate return of 30%, guaranteed.
That's technically true in the first year. But pension savings is a 30–40 year marathon. And over that time, KBC Asset Management's fees do a quiet and devastating job.
To understand why this product underperforms, you need to look at the stacking of fees:
Entry fees — 2%
On a payment of 1 050 €, KBC immediately takes 21 €. Only 1 029 € is actually invested. You start each year with a return of -2%.
Annual management fees (TER) — 1.53%
The silent killer. These fees apply every year to your entire accumulated capital — not just your new contributions.
The effect over 30 years: on a capital of 60 000 €, 1.53% represents 918 € in annual fees. Fees that would themselves have compounded at 8% if invested in an ETF.
⚠ The cumulative effect of fees over 30 years is non-linear. A TER of 1.53% does not reduce your final capital by 1.53% × 30 = 46%. It reduces it by more than 60% compared to an ETF at 0.17% TER, due to the effect of compound interest.
The least-known feature of Belgian pension savings: the 8% advance levy taken at age 60 is not calculated on your actual capital.
The State calculates it on a notional capital, assuming your fund has returned 4.75% per year from day one.
The problem: KBC Pricos often struggles to reach 4.75% net of fees. You therefore pay 8% tax on gains you may never have actually realised.
Concrete example:
The more your fund underperforms relative to the notional rate of 4.75%, the more punitive your effective tax rate.
ETF ADVANTAGE — TAX FLEXIBILITY
Unlike KBC's 8% tax (taken in one shot, unavoidably, at age 60), the 10% capital gains tax on ETFs offers real flexibility: by selling gradually over several years in retirement, you benefit each year from the €10 000 exemption. In practice, your effective real rate can fall to 2–3% — making the comparison even more favourable to ETFs than the figures in the next section show.
Let's compare the mathematical reality over 30 years, with the tax cap of 1 050 €/year (87.50 €/month). Total paid out of pocket: 31 500 €.
| KBC Pricos | IMIE ETF | |
|---|---|---|
| Entry fees | 2,00% | 0% |
| Annual TER | 1,53% | 0,17% |
| Estimated return | ~4.3%/yr | ~8%/yr |
| Gross capital (30 years) | ~62 800 € | ~132 400 € |
| Exit tax | -5 347 € | — |
| TOB on sale | — | -158 € |
| CGT 2026 (10%) | — | -9 090 € |
| Tax benefit | +9 450 € | 0 € |
| FINAL NET VALUE | ~66 900 € | ~123 152 € |
| REAL NET GAIN | +35 400 € | +91 652 € |
The Global ETF generates more than double the real profits — even accounting for the new 2026 capital gains tax and the absence of a tax benefit.
From this point, every additional year with KBC costs you more in fees than it earns you in tax benefit. Simulation for illustrative purposes only.
* Methodological note: KBC Pricos's 4.3% return is based on its last 10 years, an exceptionally favourable decade for equity markets. Over that same period, IMIE actually delivered ~10–11%/year — well above the 8% we use here. We use 8% to remain consistent with our long-term projections (20 years), which smooth out bull and bear cycles. In other words: this comparison favours KBC Pricos. Based on actual returns over the last 10 years, the gap would be even wider.
Simulate with your own numbers in our calculator — KBC Pricos is included as a comparison product.
Open the calculator →This is the most sophisticated argument for Pricos: the 'hybrid' strategy. The idea: invest 1 050 €/year with KBC, get back 315 € in tax, and reinvest it in a Global ETF. You capture both the tax bonus AND ETF performance. Note: these 315 € only exist if you choose Pricos. This argument deserves rigorous analysis.
Option A: Hybrid (Pricos + Side-pot ETF)
~89 610 € net
Option B: Pure Global ETF
~123 310 € net
Gap: ~33 700 € in favour of the pure ETF strategy.
Pricos's net bonus is actually 294 € (315 € minus 21 € in entry fees). This amount is fixed. In contrast, the fee gap (1.53% vs 0.17%) and return difference applies to your total capital, which grows every year. The opportunity cost eventually crushes the bonus.
| Year | Annual ETF growth surplus | Net bonus | Annual difference |
|---|---|---|---|
| 1 | +39 € | 294 € | +255 € hybrid |
| 5 | +280 € | 294 € | +14 € hybrid |
| 6 | +350 € | 294 € | +56 € ETF← ETF return exceeds tax bonus |
| 10 | +650 € | 294 € | +356 € ETF |
| 20 | +1 800 € | 294 € | +1 506 € ETF |
| 30 | +4 200 € | 294 € | +3 906 € ETF |
An even weaker argument for Pricos
Due to the 2% entry fees and a higher TER, the crossover point arrives as early as year 5 or 6. Even for a short horizon, the hybrid argument collapses faster. If you insist on this strategy, at least use Argenta.
The 315 €/year bonus is real. But it is fixed and does not compound. The return gap between a Global ETF and Pricos does compound — and surpasses it around year 5.
The numbers are clear: for the vast majority of savers, KBC Pricos is a financial dead end compared to passive investment.
If you are under 50, KBC Pricos is structurally losing against a simple Global ETF.
KBC Pricos should be avoided. It is one of the worst-performing pension savings products on the Belgian market due to its aggressive fee stacking.
The only exception: those over 50–55 with a short horizon (10–15 years). In this specific case, the tax bonus doesn't have time to be entirely consumed by fees. But even in this scenario, Argenta (0% entry) is consistently superior.
Borderline acceptable for:
Investors aged 50+ looking for an immediate tax bonus over a very short horizon.
Avoid for:
Anyone under 45. The opportunity cost versus an ETF is massive.
Stop all new contributions to KBC Pricos immediately.
Every euro contributed today still pays 2% entry fees + feeds a fee machine of 1.41%/year. The 315 € tax benefit does not compensate for this cost over the long term.
Redirect your 1 050 €/year to a Global ETF via a fee-free broker.
MeDirect or Saxo Bank (AutoInvest) allow you to invest automatically, with no entry fees, with stock exchange tax handled automatically. Your money already at KBC: leave it to grow until age 60 (withdrawing it now costs more than leaving it).
In summary: don't touch the money already invested. But don't put another cent in.
Last updated: April 2026