Exiting my Insurance company Pension Plan (FIRST) (33.31% tax hit) to go All-In on a 80/20 ETF Portfolio – DO or DON'T
Hi everyone,
I'm (M36y) thinking about moving my pension capital (€8,385) from a bank-managed fund to a self-managed portfolio.
The Context: I am still contributing to a legal pension secondary plan through my main bank (Belfius), as this was a mandatory requirement for my recent mortgage refinancing. This left my old Ethias account dormant, so thinking to consolidate and take control.
The Tax Hit: I have confirmed with the bank (Ethias) that the early withdrawal penalty is exactly 33.31%. This leaves me with €5,592 net. It hurts to pay that tax, but the current account only offers a 1.75% interest rate. Over 24 years, I believe a diversified ETF portfolio will vastly outperform this "dead" capital, even with the initial 33% loss.
The Plan (Saxo Bank): I chose Saxo for their AutoInvest feature (zero commission) and automated Belgian tax handling (TOB).
- 80% FRWA (Invesco FTSE All-World Acc) - 0.12% transaction tax / 0.15% TER.
- 20% QDVE (iShares S&P 500 Info Tech Acc) - Growth tilt.
- Contribution: €5,592 initial + €250 monthly.
My Questions:
- Are there better brokers for European/Belgian residents in terms of cost or features in 2026?
- What are your thoughts on the 80/20 split for a 24-year horizon given the low 1.75% alternative?
- Am I missing any crucial points or are there better strategies I should consider?