Will leasing a bicycle in 2025 have a negative impact on your pension?

No, not usually. Bicycle lease payments are usually paid from your gross salary sacrifice. As a result, the gross pay on which your pension is calculated is slightly lower. Even so, the impact is usually very small in practice. More importantly, the tax benefit of bicycle leasing far outweighs the tiny difference. The exact impact? It depends on your personal situation.

In a nutshell:

• Your pension is calculated on your gross salary.
• If bicycle lease payments are paid from your gross salary sacrifice, your pay will drop slightly.
• That drop is usually insignificant, and doesn't outweigh your tax benefit of up to 40%.
• The exact impact depends on your personal situation: status, salary, and family situation.

Find out here about when and exactly how much this impacts your pension accrual, social security benefits and holiday pay, and how to calculate your lease price. 

You might find this interesting as well:

• Buy or lease a bicycle?
• How much does it cost to lease a bicycle?
• Is leasing a bicycle advantageous in terms of tax?

True or false: bicycle leasing impacts my pension?

In most cases, the payments for a lease bicycle are taken from your gross salary. This can be done through monthly gross salary sacrifices, your year-end bonus, other bonuses, etc. This lowers your gross pay as long as your lease is in effect. That benefits you, because it means you pay less tax on your wages.

The state also uses your annual gross pay to calculate your pension. If you lease a bicycle, your annual gross pay is lower, which reduces your pension accrual for that year. What happens if you stop leasing? Then pension accrual immediately returns to its normal level.

When will bicycle leasing affect my pension?

Bicycle leasing doesn't always affect your pension. After deducting your lease price, is your annual gross salary still above the salary cap for the pension calculation? Then bicycle leasing will have no effect on your pension at all. 

Do you work for the Flemish government or as a permanent member of staff in education? Then your lease price won't affect your pension either, because your end-of-year allowance will not be eligible for your pension amount. 

The calculation of your pension is based on the gross salary you earn at the end of your career. If you lease a bicycle through your employer on a monthly gross salary sacrifice basis, it is only logical that this will temporarily reduce your gross pay somewhat, and thus your pension.

What are the effects of bicycle leasing on your pension?

The impact of leasing a bicycle on your retirement is usually negligible. Because you sacrifice part of your gross pay to pay for a bicycle lease, your gross pay will decrease slightly. Your pension is calculated on your gross salary. On average, we are talking about a difference of barely 1 euro per month for an annual lease price of 1,000 euros. This is offset by a tax benefit of up to 40%. Your personal situation affects this.

In a nutshell:

• Your pension is calculated on your gross salary.
• If bicycle lease payments are paid from your gross salary sacrifice, your pay will drop slightly.
• The average impact on your net pension is around 1 euro per month for an annual lease price of 1,000 euros.
• Your status, salary, and family situation determine whether there is any effect at all.
• More importantly, the tax benefits of bicycle leasing far outweigh the tiny difference. 

Impact on pension does not outweigh the net benefit of bicycle leasing

The impact of bicycle leasing via gross salary sacrifice on your pension is negligible when compared to the tax benefit of bicycle leasing. This is particularly so when you consider the net benefits you get compared to a private purchase, making your lease bicycle up to 40% cheaper than if you purchased it yourself. Read all about the net benefit in our blog, “Buy or lease a bicycle?”. 

And remember: pension accrual is in the future. Inflation, among other things, means 1 euro is worth more today than 1 euro in the future. We also see that the rules surrounding pensions are occasional changed. So: better a bird in the hand than two in the bush. Or in this case, a lease bicycle.  

Here's a handy calculation example

Imagine you have a pension of 1,800 euros and you lease a bicycle with an annual lease price of 1,000 euros. You lease a bicycle for three years, making your net pension for those three years 1,797 euros per month for that period. If you draw 10 years of pension, the total impact on your pension at 10 years is 360 euros. 

Unsure about the impact of bicycle leasing on your personal salary? Then check with your company's HR department or your social secretary.  

Will leasing a bicycle have a negative impact on your pension?

Bicycle leasing is not disadvantageous for your pension. It does impact your pension by reducing your annual gross pay. That impact is minimal and the "downside" to your retirement does not outweigh the net benefit of up to 40% if you lease your bicycle rather than buy it.    

So, is leasing a bicycle advantageous? 

Yep, leasing a bicycle really is advantageous. Because it costs up to 40% less than buying a bicycle yourself, you soon find that the tax benefit far exceeds the small impact it has in some cases on pension, holiday pay, and social security benefits. 

Don't forget to check out our blog on the tax benefits of bicycle leasing. There, we explain exactly how fiscally beneficial a lease bicycle is.