Update Post: November 30, 2023 1:50 am
According to the demographic projections of the National Institute of Statistics, between 2023 and 2050 the working-age population will be reduced in Spain by more than 800,000 people, while the population over 65 years of age will increase by more than 6 million.
Since the Public Pension System is based on a distribution in which current contributors pay retirees in exchange for a pension in the future, it is worth mentioning. Consider How The Increase in the Senior Population Will Affect the Sustainability of the System.
Due to this problem, the need to supplement the public pension has acquired increasing relevance. Pension plans, in this context, are emerging as fundamental pillars to ensure a savings base.
These products have tax advantages, reducing the personal income tax tax base in the year of contributions. This characteristic makes them an attractive option for those seeking to secure their financial future.
Individual pension plans and life cycle
Banco Sabadell’s individual pension plans, managed by experts, are the option par excellence. Its design, aimed at long-term savings, limits liquidity to avoid misuse of capital intended for retirement.
However, in special situations, such as serious illness or prolonged unemployment, you may want to redeem your savings early. In the event of death, designated beneficiaries can access the plan. In addition, starting in January 2025, client contributions that are at least ten years old can also be redeemed. As we have said, since this is a long-term saving, the following aspects must be taken into account.
The evolution of pension plans has been notable and in that sense, the so-called life cycle plans have revolutionized the management of these savings. Their main advantage is that they automatically adjust investments according to the client’s risk profile and time horizon.
That is, the saver can plan his retirement calmly, without worrying about market fluctuations, since the investments are automatically adjusted year after year. In total, they have three different risk profiles so that each person can choose the one that best suits their needs.
Employment pension plans
Banco Sabadell also offers employment pension plans, whether you are self-employed or salaried, which are not far behind in terms of benefits and opportunities. In fact, it is the only entity that markets pension plans for SMEs and the self-employed including life cycle investment. In the case of companies, they have different policies, so that they can choose to integrate the investment plan that best suits their needs. Its advantages are:
Peace of Mind for Employees: By complementing the public pension, it provides personal and family security for retirement. Employee Loyalty: It becomes an attractive tool to attract and retain talent in companies. Tax Benefits: Contributions reduce the employee’s personal income tax and are deductible from corporate tax for the company.
In addition, life cycle models are also available in this modality, adapting annual investments to the age of each participant. Banco Sabadell’s life cycle plans have occupied top positions in INVERCO rankings in recent years. In addition, BanSabadell Pensiones has once again won the award for the best pension fund in Spain at the IPE Awards 2022.
For the self-employed, it is to guarantee an essential economic cushion for retirement. With the Banco Sabadell self-employed pension plan it is possible to contribute up to 5,750 euros annually. This program also has tax advantages and the possibility of adding life cycle investment.
Finally, Sabadell offers Flex Empresa, a digital platform that allows part of the payroll to be paid in kind with tax benefits in personal income tax. The program includes retirement insurance in which you can allocate up to 30% of your gross salary.
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