Premium not tax deductible
With net pension plans, you do not pay tax on the pension benefits. This is balanced by the fact that the premiums you pay for this plan are not tax deductible. The capital you save in the UPP-plan is exempt from the so-called Box 3 tax (investment yield tax) in the Netherlands.
You pay your contribution for the net pension plans monthly out of your net salary. When you come to draw your pension benefit you do not pay any tax on it. This is the reverse of what happens with your basic pension with Forward because you pay your contribution to Forward out of your gross salary and are then liable for tax on your pension benefit.
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