Investing in a pension plan; all the keys

Find out how to choose the pension plan that best meets your objectives.

The pension plans have positioned as one of the options more profitable and sure when generate savings for the retirement. In recent years, and as a result of the increase in your popularity, thanks to advantages as the tax arrangement of the contributions, the financial institutions have diversified more and more the offer of this kind of instruments. Thus, nowadays, the individuals have the possibility of choose among a wide pension plans variety depending on your personal objectives of saving.

Despite the fact that this diversity of products allows to small savers find the instrument that better adapts to your needs, also supposes that the choice of a pension plan has returned a lot of more complex. In this item, you count all the key for invest in a pension plan and so that can take the decision righter for your retirement.

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How work the pension plans?

The pension plans are products of saving long-term especially designed for complement the state retirement pension once put an end to the work activity.

The operation of these instruments is very simple: through the contracting of a pension plan, the individuals can carry out a series of contributions, volunteers in any case, and periodical or punctual, that are invested for the managers of the fund in accordance with an investment policy previously established. This way, the profitability that generates this type of products is determined by the evolution of the assets in which invests the plan. Likewise, the pension plans can classify in a first general level, depending on the type of one assets to which destines the capital, in assets of fixed-income, variable or mixed.

The contributions yearly are limited by law to 8,000 euros (taxation in force in territory common). One of the major advantages that present the pension plans in this respect lies in which your contributions are fiscally blandished, so reduce the basis of assessment of PERSONAL INCOME TAX and allow, therefore, an interesting fiscal saving. The maximum reduction is the minor of the next amounts:

  • 8,000 euros.
  • 30% of the net income from employment and/or business activities.
Given that the pension plans are specifically aimed at the retirement, your liquidity is reduced. The rescue of this kind of products only can carry out happened the contingency of retirement or also in other extreme cases, as incapacity for work, severe illness, premise or long-term unemployment. Moreover, from January 1, 2025 be able to rescue contributions with at least 10 years of seniority. In any of the cases, the capital can rescue in the shape of an only charge, in the shape of temporary annuity or combining both modalities. If it contemplate the specifications of the plan, also be possible charge it in the shape of life annuities or in provisions.

Key for choose a pension plan

The pension plans present several variables that can result determiners when choose the product more suitable. In the first place, as already has mentioned, every pension plan has a philosophy of investment specific that determines the type of one assets to which destines the capital. Generally speaking, those plans that invest in assets of fixed-income offer broader safety that which destine your funds to variable income assets ; however, the variable income assets present an earning potential enough higher that those ones of fixed-income. This way, the pension plans that invest in assets of fixed-income are more recommendable for those savers of more conservative profile. Nevertheless, the experts advise vary the risk level depending on the age. According to this, the people younger owe invest in plans of major risk in order obtain the maximum profitability possible and, with time, choose investments safer with the aim of guarantee a certain benefit for a retirement more and more next.

On the other hand, the pension plans demand the payment of certain fees, of management and depository, that vary depending on the company and the type of plan. In this respect, is basic carry out a calculation esteemed of the fees associated to the contracting of the product and make sure that the on sale of the same not can suppose a loss considerable of money.

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Finally, if chooses go through the investment made in a pension plan to a new company, the account holder owes take care of carefully to the conditions of the long-term plan instead of take a decision based in the bonuses that offer the companies to the process this process.

If are thinking in invest in a pension plan, but not know for where start, comes to BBVA. In bbva.es find detailed information on all the advantages that offer our pension plans, as well as a wide range of products and saving insurance products and investment. If have some question, not doubt in contact we: our expert team you help to choose the plan that better adapts to your needs.

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