Is it profitable to subscribe to a pension plan from a young age?

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Decidedly there is a lot of investment. And one of them is based on preparing your retirement from a very young age. So that in this way, they are in the best of dispositions to have a higher income during the golden years of their life. It does not matter that you are not yet 30 years old. You can subscribe to a pension plan based on the income you have each month. The earlier you hire, the higher your income will be when you retire. Even though the question that occurs at the moment is if it really is a profitable operation at such an early age.

From this general scenario, you must remember that today the average pension in Spain is 1,098 euros, según los últimos datos recopilados por la Secretaría de Estado de Seguridad Social. Es cierto que aún te quedan muchos años para llegar a esta situación. Pero no preverlo y afrontarlo como una inversión muy original destinada a más largo plazo. Por encima de otras estrategias más inmediatas que están representadas en la compra y venta de acciones en los mercados de renta variable. Sea cual sea el caso, es otra de las opciones que tienes a partir de ahora para rentabilizar el ahorro. Aún cuando desde una perspectiva distinto a la de los sistemas tradicionales.

Because especially, it is absolutely normal that your financial goals are aimed at increasing your checking account balance. But even so, you can combine both strategies rationally and depending on your economic opportunities. Even though it is surely difficult for you to take charge of the many years that you have left for this special moment of your life to arrive. Because you still have a long professional career ahead of you. But being forward-thinking won't hurt you, it will will be a solution to what the future may hold. Even if public pensions are drastically reduced over the next few years. Where everything can happen depending on the evolution of the economy, both nationally and outside our borders.

What does a pension plan contribute?

Such a product provides you with an unconventional way to make your savings profitable in the long term. So that years later you can get an interest rate through the income generated through pension plans. But with the advantage that you can benefit from this tax saving model for many years. And very particularly now that you are young and you must pay a lot of money for your Fiscal obligations. Another of his most relevant contributions is that you will arrive in better conditions to your retirement. With an income as a complement to the public pension that corresponds to you for your years worked.

Desde enfoques algo especiales que tendrán como target incentivize savings. So from now on you allocate a part of the income for this purpose. It does not have to be a large amount, but being young, a small part of it will suffice. With the added advantage that you can vary this allowance based on your financial needs. Unlike what arises with a good part of financial instruments (stock market, exchange-traded funds, warrants, sale on credit, etc.). Where you should adjust to an initial investment from which you will not be able to deviate. Another favorable element for hiring a pension plan is that you will eliminate a large part of the commissions and administration expenses of these savings and investment formats.

Profitability of these products

Now is the time to ask yourself one of the most important factors in basing your decision. And that is none other than the profitability that the pension plan offers to your savings. First of all, you should pay attention that do not originate a fixed or guaranteed interest rate. Pero, por el contrario, serán a expensas de lo que dicten los mercados financieros. No obstante, proporciona una rentabilidad media anual que oscila entre el 4% y el 6%, dependiendo de los formatos elegidos en cada momento. Aún cuando de todos modos no solo este aspecto será relevante para valorar o no tu subscription. Pero otros de distinto índole, pero igualmente decisivos para el futuro.

One of them proceeds that allows you to select different investment models. Desde los modelos más convencionales de los mercados de renta fija hasta las acciones más exigentes. Sin olvidar otros enfoques de forma clara alternativos que van dirigidos a un perfil de Username mucho más definido. Sea cual sea el caso, no se trata de un producto rígido en el que hay que limitarse a un único modelo de administración. Pero tienes todas las variantes para adaptarte, no solo a tu estilo de vida, sino a lo que desees para cuando llegue el momento de dejar el mercado laboral.

To be rescued at any moment

Another of the most relevant contributions of the pension plan is that they allow you to amortize the financial contributions at any time and in any circumstance. Faced with needs in your personal or family life. For example, pay off a debt with third parties, take a trip with friends or basically face the payment of your mortgage loan. Because in fact, one of the qualities of these financial instruments is that you can do it in very special situations. As in cases of unemployment, disability or serious illness. From this perspective, it is a product that can help you anticipate unwanted situations that can take their toll at some point in your life. No wonder he has many years ahead of him.

As a negative element, it is necessary to count on the commissions that they will have to face when formalizing this savings format. With a maximum rate that meets the 1,50%. Whatever the case, they will always be lower than those applied in investment funds, which can go up to slightly more than 2%. Whatever the case, you must analyze whether it is important to highlight taking these penalties. Because for this you will have no choice but to analyze your income statement. Because you may come to the conclusion that it is still too early to allocate a large amount of resources to the pension plan. Where you will have to make a choice, one way or another.

Plans with guaranteed interests

The good news of its formalization is that you can choose a pension plan with guaranteed performance. With margins that move in a very wide band between 2% and 4%. They will be interests that will accumulate little by little and that you will have to wait until retirement age. On the other hand, these interests will increase the capital until this social situation arrives. But with the added benefit that you will not have to pay any euro for tax treatment. Not surprisingly, it is something that you should value in case it is convenient for you to do it from now on.

You will have a guaranteed return only in some pension plans. Which ones you must choose if the profile you present is that of a conservative or defensive investor. At the same time, you will need to examine whether it generates more benefits than other financial instruments. As an example, in the investment funds that present characteristics very similar to the ones we are talking about. Both in terms of its performance and the structure of the investment portfolio. With the only difference that you can rescue them at any time. Without any type of penalties or expenses in administration or maintenance.

Tax improvements in plans

This product intended for retirement is characterized especially because if you pay 2,000 euros you will have it the tax base is reduced. In practice, this means that you would have to spend less financial effort to pay the tax. To the point that it can be a very favorable operation to defend your interests from now on. On the other hand, you must not forget. Not surprisingly, you are in a position to generate greater tax savings, based on your job performance. That can achieve an amount of up to 1,000 euros. This is another of the approaches that you must address on whether or not you subscribe to a pension plan today.

Because you do not forget, with the pension plan you cannot discount the savings, but on the contrary, you should not declare them until they are reimbursed. It is one of its great advantages and that other products do not require investment. Even when you are very young, these conditions may interest you despite not using the capital until the moment of retirement. Ultimately, everything will depend on your personal situation and that it will not always be the same in all cases. Even though you will have greater security so that in the golden years you can have a more powerful income than what is due to you from your work. Even though one thing is certain, it is not the best time to subscribe it either due to the uncertainty of the financial markets.