Type of pension plans: Which one exists
SANTANDER BLOG
Answer simple questions and calculate how much you need to save every month so that your retirement income is what you imagine.
With this simulator you will be able to calculate how much you would have to save to supplement your future pension and thus enjoy your dream retirement. Also, find out which product is the best suited to your needs.
A pension plan is a pension savings product i.e. one that allows you to plan long-term savings – whose main objective is for the customer to generate capital or income that will be available to them upon retirement.
The way a pension plan works is that an individual makes regular or one-off monetary contributions and the managers of the plan make investments in financial assets in order to obtain profits, following certain profitability and risk criteria as set out in the plan's investment policy.
At retirement age, the customer will be able to enjoy both the amount saved and the possible return generated over the years: either in the form of a lump sum, where all the money is paid at once, or in the form of income, where a fixed amount is paid regularly.
Pension plans are normally subject to fees charged by the company that manages the savings and the custodian. Finally, it is important to know that there are specific scenarios allowing the customer to cash in their pension plan before retirement: total or absolute permanent disability, dependency, serious illness, long-term unemployment or death.
The choice of pension plan, since it is a personalised savings plan where you contribute a voluntary amount, is entirely dependent on your personal situation and your investor profile. . In addition, with such a wide range of options, there are a number of important criteria to take into account when considering your plan.
Contributions made to pension plans plans reduce the general taxable base amount for personal income tax, both in terms of contributions made by the customer and those made by the company.br />
However, it should be borne in mind that tax deductions associated with pension plans are limited by law, as are the contributions that can be made over the course of a year
The maximum tax deduction that can be obtained with an individual pension plan is:
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