How a pension plan works
Sometimes we have asked ourselves about the future: What will happen when I retire and stop working? How much will my standard of living decrease? The truth is that there are instruments to overcome the fear of retirement; they are known as pension plans . In the next article, it shows you how a pension plan works .
Purpose of a pension plan
You will have heard a lot about pension plans. To clear up doubts, a pension plan is a financial product of savings and also of investment, since you have to invest some money in them. That money is entered periodically and can be redeemed once you retire.
Tax deduction on the income statement
At the time of making the income statement, the contribution made to the pension plan can be subtracted from the income . The tax savings can reach up to 45% of the contribution. Thus, those under 50 may subtract up to 10, 000 euros per year, and those over that age, up to 12, 500.
Can you rescue the money?
At first you could only recover the money from the pension plan for retirement, disability, death ... although now it is easier to recover the money invested. If the person in question is unemployed and does not receive any type of benefit, he / she will be able to recover the amount of his / her pension plan and, also, he / she will be able to do it in case he / she contracts some serious illness .
To your liking
Actually, pension plans can be configured to suit the consumer. That is, you decide how much you want to invest and how often. In addition, at any time you can modify these parameters, interrupt the investment or keep the pension plan in case you change your financial institution.
Unemployed and with a pension plan
If one of the spouses does not work and their income is less than 8, 000 euros, they can contract a pension plan. The maximum contribution that can be made to the pension plan will be 2, 000 euros. In addition, it will be exempt from taxing the Inheritance and Donations Tax.
Types of portfolios
The composition of the investment portfolio in which the pension plan is integrated can be short-term fixed income, which must not last more than 2 years; of long-term fixed income , this time it must exceed 2 years; of mixed fixed income, whose fixed variable income assets can not exceed 30%; of mixed variable income, its variable income assets must be between 30 and 75%; variable income, their equity assets must be at least 75%, and the guaranteed, which are plans in which there is a guarantee that a certain return will be achieved.