Best pension plans
The supply of savings-pension is very wide and varied and this time also includes a showcase in which a part of the entities display their gifts and incentives promotions. Other managers dismiss this strategy and emphasize the profitability of their products.
As all agree is the recommendation that customers do not leave your decision for the last minute. Surprisingly, “every year there are participants who transact their contribution, the last day of the year and find they can not apply the tax deduction in that year, since the operation failed to materialize until two days later by the transfer of money that goes into the plan, “said Ricardo Gonzalez, Commercial Director Mutuactivos, a subsidiary of Mutua Madrilena.
Contributions to pension plans and pension plans insured (PPP) are deducted from the taxable amount of income tax. This is a direct benefit to the taxpayer can obtain a saving of between 24% and 43% of your contribution. High rents are what get more tax returns.
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Products
are on the market about 1,250 private plans in addition to the insured pension plans, life insurance similar to private pension funds, which gradually gain adherents in an environment of high market volatility.
Which product to choose as broad a catalog? Experts agree that future pensioner’s age is a factor. Most young people should go to equities, as they have enough time to absorb the potential fall and, ultimately, the profitability can be obtained is the largest available in the markets, “said Wolfgang Kania, head of Deutsche Bank plans.
At the other extreme, those closest to retirement should be placed into more conservative, says Rosa Bueno, Director General of Europensiones, a subsidiary of Banco Popular. Plans with guaranteed and insured pension plans are most appropriate for this type of savers. “The ideal is to sign one whose expiration date matches the participant’s retirement,” says Javier Sanchez, head of Citibank pension plans.
Risk profile
Anyway this is the general recommendation, but we must also take into account the risk profile of the investor and his ability to fit periods of losses.
What matters is what is contracted and accept the consequences.
The market volatility living immersed in the international crisis of both fixed income and equity, blanched left much of the savers who do not want to take risks. So many managers have launched such a product in its pension fund or pension plan assured (PPP). Despite this trend, the CEO of Ibercaja Pensions, Rodrigo Galan said that hiring a guaranteed “rather than a recommendation from the institution, we see that is a customer demand. We believe that in any case this kind of products should complement and diversify with others who invest in emerging, for example.”
In La Caixa share this vision. In the current environment “our recommendation is that the client blinde a percentage of their savings, which can be around 80% in a guaranteed or insured pension plan and the remainder placed in higher risk products,” says Joseph Antonio Iglesias, marketing director SegurCaixa Holding. He adds that the crisis that forces the Spanish debt to pay high interest rates is benefiting the investor.
Taking advantage of this situation, “we have launched several pension plans insured at different times and which expires in twenty years we offer a 5% annual return,” says Iglesias.
In Caser, director of life and pensions of individuals, Manuel Alvarez, corroborates the pull of the guaranteed and products that invest in deposits due to rising interest rates long term. In point of equity, Alvarez dismisses the long-term investment in the Ibex 35 but bet by emerging and geográficam diversification, with special reference to Latin America and Asia.
The commissions charged by the plans is another point to bear in mind, especially if you purchase a product fixed income money where low profitability could disappear by applying this cost, point in Citibank.
The full list of recommendations with the convenience, in which all experts agree, to make periodic contributions rather than bulky extraordinary disbursements. Thus, “it is easier to diversify risk and take the good times of the market”, points in Mutuactivos. Unanimity is also total in saying that you should never decide to transfer from one plan to another with the sole discretion of the gift offered by the manager, which is common at this time.
Profitability
Profitability is another major factor to consider when selecting a product. The intensification of the market crisis of debt and equity has placed the private pension plans back into the red zone one year, which was released in July 2009. Between last November and December 2009, the losses amount on average to 1.38%.
Despite this negative figure a bunch of plans has high returns. The equity are recorded the highest gain, which comes to 31.15% in the case of Private PlanCaixa Emerging stock, which lies 95% of its assets in equity funds Through Tempelton Franklin and JP Morgan, mainly.
Global Bestinver, with 224 million, is the plan more equity capital, and a return of 18.52% in the last twelve months. This manager, say their investment strategy, with purchases of shares of companies whose price is below the value estimated by the entity, with a forecast of future increases, fits perfectly into the pension plans are long term products.
Learn from the mistakes of others
Hire a pension plan is not anything, especially if one considers that it is a very long term commitment. If only for this circumstance, you should put the spotlight on the process to avoid situations like the one described by the Directorate General of Insurance and Pensions which explains a complaint from a participant to this department.
Following the advice of BBVA Pensions, an individual, 63, moved their savings to a guaranteed plan due in 2030, although his retirement was in 2010, two years after signing the plan. When the moment came and claimed their payments, found that there was no guarantee if rescuing the plan before the due date. Insurance concludes that this is a performance that does not conform to good practice. Something similar happened with Santander, according to a complaint by another participant.
In this case, the client hired his wife for a mortgage with Santander, which made them sign the opening of two pension plans with input from 600 euros each, then adding the branch manager of his own hand the obligation to make an extraordinary contribution of 75 euros. Following customer demand, the entity was willing to refund the contributions made and acknowledged his error. Business information received by participants to purchase a plan and beneficiaries at the time of collection accounts for 26.6% of complaints from savers to the service of complaints in the first half of the year.
This department included in this section the lack of reference to the possibility that the savings plan record losses on their investments. Insurance claims that it is common for entities to present to clients simulations of potential returns to be obtained in the future with optimism criteria. A swim that the client should also receive information about what would happen in worst-case scenarios so you can get an idea of ??the posbiles some future options.
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