The return of guaranteed pension plans and fixed income
In these troubled times, a return on money is the objective of all who have savings. However, the global crisis has created between rock and a host of financial products. Investors are no longer willing to risk more than necessary and in most of the time choose to flaunt her conservative profile preferring the safer option.
Under pension plans, this theory has been amply demonstrated. According to a survey by the Centre Inverco, all the managing bodies of these products believe that the crisis has meant that the participants have become more conservative. And to show a button. In 2011, investors have opted to hire guaranteed plans (to ensure all the capital invested and have an associated interest rate may be fixed or variable) or transfer its assets to fixed income plans (which invest in bonds and securities with fixed income).
The yield , though, is one aspect that is sacrificed for safety. According to the data handled Inverco until November 30, 2011, the weighted average annual return of guaranteed pension plans is 2.87% for a term of ten years. Plans for short-term fixed income remunerated at 0.52% a year, or 0.60% at three years, 1.10% and five years and 1.29% for ten years, while income Long-term fixed interest rate is negative at one year (-1.17%), from 0.71% at three years, from 0.95% at five years and 1.26% for ten years. In other time periods, profitability increases. Specifically, fixed income plans in the short and long term give a 4.43% and 4.67% at 21 years respectively. The mixed fixed income offering negative returns at one and five years, paid a three-year 0.40%, 0.58% at ten years and 4.59% at 21 years.
And, according to the consultees for Inverco, the most valued aspects of pension plans and savings product are, in this order, its taxation, security and transparency, profitability and liquidity.
The importance of planning for retirement in any case does not go unnoticed. All respondents considered necessary to encourage savings in pension plans to supplement for retirement, but note that its penetration rate in Spain is low compared with other European Union countries and, to grow in the market should improve its taxation, implement reforms in the public and provide them with greater liquidity.
Profile of the participant
As explained Inverco, 60% of participants in pension plans are male and 40% are women. Also in Spain the average age is between 40 and 60 years, and in hiring plans, the branch network is the most used, at the expense of telephone and Internet banking.
85% of the participants made ??an average of contributions less than $ 10,000 annually. Specifically, 19% do so in quantities less than 2,000 euros, 36% contribute between 2,001 and 5,000 euros and 30% between 5,001 and 10,000 euros.
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