Pension plans

A pension plan is an investment and savings product. By making regular or one-off contributions to a plan, you will receive money or an income in the future to complement your retirement pension.

Pension plans have various tax advantages. The contributions made reduce the imposible base of Personal Income Tax. The limit of the tax reduction is set at the lowest of the following amounts: 8,000 euros, or 30% of the net return from work or economic activities performed during the tax year. However, once we decide to claim our pension, this income will be classed as employment income.

The pension plan can only be claimed when we reach the legal retirement age, or in specific circumstances such as death, inability to work, serious proven illness, mortgage foreclosure of our normal residence, long-term unemployment, situations of severe or heavy dependence, and, from 1 January 2025, contributions of at least 10 years are liquidated.

Once we reach retirement age, we can decide how to claim our pension, whether with financial income, that is, receiving an amount at intervals of our choice, whether with a single payment, whether in a mixed format (a combination of these two), or whether in a free format (without a defined payment frequency).

Our pension plan contributions are invested into different financial products, with an aim to produce returns that vary according to the profile of the investor that we want to adopt: conservative, moderate or decided. Because of this, not all pension plans work in the same way. Depending on the type of assets in which our bank invests, we can classify pension plans in the following way:

  • Fixed income: Treasury bills, corporate fixed income, bonds, deposits. Depending on the duration of these assets we can classify them as fixed income over the short and long term. Recommended for conservative profiles.
  • Variable income: More than 75% of the portfolio is invested in variable income assets, such as stock and warrants. It is recommended for determined profiles.
  • Mixed: These combine fixed-income and variable-income assets. Suitable for moderate or decided profiles.
  • Guaranteed: Plans with insured returns, regardless of market performance. Recommended for conservative profiles.

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