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Pension Plan Simulator

Answer simple questions and calculate how much you need to save every month so that your retirement income is what you imagine.

Calculate your pension plan contributions

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.

What is a pension plan?

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.

How do I choose the pension plan that best suits my situation?

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.

  • Management: your situation will not be the same when you are 35 as when you are 55, so it makes sense for the management of your pension plan to change over time. To do this, you can choose a traditional pension plan, where you will be in charge of choosing the plan's profile at any given time, or a target plan, where the managers will be in charge of optimising it according to your target retirement date and your risk profile at any given time.
  • Assets to invest in: you should consider where you wish to put the money you plan to save. People who are closer to retirement age usually have more conservative profiles and do not want to take risks. It is more common for them to opt for guaranteed or fixed-income pension plans. In contrast, it is common for younger profiles to be willing to take on more risk in exchange for higher returns, which is why equity pension plans are usually the best option.

    Another scenario would be to diversify risks, opting for a mixed pension plan , that offers the advantages of both of the previous plans.
  • Amount saved when you retire: by setting the approximate amount you want to have when you stop working, you can choose the best plan for you.

How much tax relief can I get with a pension 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:

  • €1,500 a year.
  • Or 30% of the sum of the net income from work and economic activities received individually in the tax year.

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