Pension plans invest in the future
Pension plans: compare, choose and invest in the future
Seeing how pensions and pensioners are, protesting in La Roane to demand decent pensions, tackling long-term financial planning that includes retirement seems obliged.
Saving to maintain our purchasing power when we put an end to the professional career, that is the objective of those who look towards the future of the current Social Security pension system with some skepticism. And it is that, who will finance the contributions of the future? The data on the trend in the number of active workers works against us.
Hiring pension plans that guarantee access to our money in the future has therefore become a highly recommended alternative, necessary for many, if we want to reach our retirement stage with a full guarantee of financial solvency.
What pension plan should we hire?
Like any financial product, there are a multitude of offers on the market and each one is more appropriately adjusted to a type of worker and investor . There is not a single pension plan, in the same way that there is not a single type of worker, for that reason, it is in our power to search, compare and choose the best possible option to save our money successfully for the retirement.
In this sense, three of the factors that we must take into account are the age at which we are going to hire the plan, the amount of money we want to contribute and how we are going to do it to complement the public pension.
Two other important issues are the type of risk we are willing to take and when and how we want to rescue our money . If we weigh these factors well and trust an entity that properly manages the fund and does not cause us excessive expenses (in terms of commissions), we will have been right.
Experts say that, to achieve adequate savings , we must hire our pension plan between the ages of 30 and 35 , and in doing so, trust a product whose management relies on riskier assets at the beginning and on a more conservative management at the beginning. approaching the retirement date.
If we opt for an annual profitability of 5%, for example, and we allocate 100 euros per month after 30, we will get about 90,000 euros when we retire.
The logical thing is to contribute a fixed monthly amount that we know that we will be able to assume continuously until the moment of retirement. 10% is advisable if we start saving with 30 years .
Regarding profitability, the best way to weigh it is to assess the historical behavior of the plan that we are going to hire , that is, to analyze its profitability during the entire life of the plan, from when we hire it to the approximate date of retirement, only in this way we can really know its performance.
Remember that although pension plans have tax advantages in relation to the amounts contributed, these must be faced at the time of the rescue of the plan, a factor that we cannot ignore if we want to avoid uncomfortable surprises at the time of retirement. Since January 2015, the tax limit to be deducted is 8,000 euros per year or 30% of net income from work and economic activities.
Weigh all the financial possibilities: traditional and technological
Pension plans are a very useful tool for planning our long-term savings , as they allow us to do so at our own pace since: we can make the contributions we want over a year, have several plans, if we wish, to diversify our investment and improve its performance (fixed, variable, guaranteed income ...), and achieve some immediate savings in the income statement.
Choose your plan correctly, according to the risk profile that you are willing to assume, and guarantee the future of your purchasing power .
As we have pointed out, there are multiple offers at your fingertips, including those launched by online financial companies on whose web pages you will find all the pertinent information. The so-called fintech pension plans can be an alternative to the plans marketed by your traditional financial institutions.