Do You Really Have The Best Pension Plan?


When it comes to managing your savings, investments or personal finances in general, you should always bear in mind the existence of a financial product every day more common with a view to the future well-deserved retirement, we are referring to pension plans.

This savings-investment system has different modalities (fixed income, variable income, guaranteed … etc.) Always depending on the percentage of variable income that the financial assets in which it invests or the special characteristics of guarantees at the time of the rescue of the investment. Remember that pension plans have interesting terms and financial conditions, which currently in Spain have generated a constant recruitment in recent years, and exceed the 100 billion euros accumulated and these belong to more than 8 million people. Let’s review in a basic way which is its main advantages for the investor.

  • It makes it easy to build a solid investment portfolio: It is a product oriented and designed for the long-term investor, given that the money contributed cannot be withdrawn before 10 years of seniority (with some exceptions). Therefore, it will not be so exposed to the high point volatility and logic of the markets.
  • Tax deductions: Pension plans have the fiscal incentive to be able to deduct their contributions from the tax base in the IRPF, at the time of “pass through finance”.
  • They can be transferred freely: As happens to investment funds (for example), pension plans can be transferred between them according to current regulations facilitating better management and the search for greater profitability.


You already know that pension plans facilitate the movement of capital contributed periodically from those that may be less profitable, to others that present better numbers of accumulated benefits for the client. You only have to make the transfer request to the manager that you want and this will be responsible for changing your plan in a few days without any expense for said transfer.

Once you know better the dynamics of pension plans is when you should reflect on the most common mistakes made by thousands of investors in this product and then we will highlight.

  • Hire a certain pension plan (whichever it is) in exchange for gifts such as televisions, tablets, personal computers or mobile phones.
  • Hire a pension plan that has very expensive commissions and obtain low annual returns repeatedly over time.
  • Do not change pension plans due to neglect, apathy or lack of financial responsibility in the investment.
  • Maintain the same level of high financial risk in the pension plan initially chosen, when several decades have passed and the retirement age approaches (adaptation according to investor profile).
  • Do not hire a pension plan for not changing banks: You should always try to earn money (higher accumulated profitability), even if it is necessary to open another account in a bank different from ours.
  • Continue “giving away” your money in a pension plan, for a management that is resulting in negative year to year interests and that you can also transfer (freely without tax), to another more efficient and profitable for your pockets.

In this world of personal and family finances there are many factors that can facilitate the proper use and profitability of your money if you do a few things well. Having to make comparisons of historical returns between the different pension plans and contrasting the commissions or other expenses presented by each of these products, it is very possible that you will already find the answer to the initial question that we have raised: “Do you really have the best? Pension plan?”

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