Banco Sabadell offers its clients various types of pension plans that allow them to start saving to better plan their retirement.
In the current context of the global Covid-19 pandemic, the need to start the savings process as soon as possible to allow us to be calm before our retirement is evident. Its tax advantages allow savings of up to 45% and it is possible to decide how much and when to contribute.
The longevity and financing risks of the public pension system call into question the future maintenance of the current levels of retirement pension coverage. For this reason, the best option to maintain the current standard of living when retirement arrives is to supplement the Social Security pension with the savings you make over the years.
Banco Sabadell offers a wide catalog of savings solutions for retirement, among which two main modalities stand out that help improve the future and are adapted to the needs of each client: insured pension plans and individual pension plans.
Insured pension plans (PPAs)
What are they?
Insured pension plans (PPAs) are life-savings insurance with a guaranteed profitability that makes it easier to accumulate savings to complement the public pension at the time of retirement, and whose benefit can be collected in the form of income or capital, enjoying of tax benefits at the time of making the payment of contributions. It is the ideal instrument for very conservative clients.
What is the difference with pension plans?
The main difference is that PPAs guarantee 100% of the capital plus a guaranteed return for quarters or semesters. And since they are also life insurance, in the event of death, the beneficiaries receive the accumulated balance plus an additional capital of 10% with a maximum of 12,000 euros (600 euros for insured persons over 65 years of age or who present aggravated risks) . Fiscally, pension plans and PPAs have the same treatment.
Individual pension plans (PPIs)
What are they?
They are products designed in order to constitute savings for retirement, with significant tax benefits, and where the profitability is assigned to a portfolio of assets with a specific investment policy. In this sense, the offer ranges from products with exclusive positioning in short-term monetary assets, fixed income, variable income or a combination of said assets in different percentages.
And within the pension plans, the Life Cycle plans, known as Sabadell Planes Futuro, stand out as an innovative offer.
Sabadell Planes Futuro, individual pension plans
What are they?
Sabadell Planes Futuro are a range of individual pension plans that adapt to the age and also the risk profile of the client. In these plans, the percentages of investment in fixed and variable income are adapted as retirement approaches.
For example, if the retirement date is near, investments take a more prudent position: the percentage of investment in equities is reduced and positions in fixed income increase. In addition to the retirement age, it also adapts to the risk that one is willing to assume based on the client’s profile.
Also noteworthy are the incentives offered for the transfer of plans from other entities, which can reach up to 5% of the transferred amount, without any limit.
Our Sabadell Planes Futuro pension plans closed 2019 with excellent returns. Not only did they occupy the top positions in the life cycle plan rankings, but they were also the leaders in the RFM and RVM categories developed by Inverco.
In 2020 this leadership position has also been maintained, with the twelve plans that make up Sabadell Planes Futuro in the first quartile of profitability according to the investment profile of their plans. It should be noted that in this year, marked mainly by market volatility due to the evolution of the pandemic, all Sabadell Futuro plans have obtained positive returns.
One of the main advantages of having a pension plan is that the client is guaranteed a deduction in the general tax base of personal income tax. It can represent a tax advantage of up to 45% in the next income statement.