Pension plans: advantages and disadvantages before the end of the year offers

Historically, pension plans have been one of the investment vehicles preferred by the Spaniards.Today, with the enormous uncertainty about the future of pensions, they are gaining popularity again.Many people look for an alternative for their savings and pension plans are postulated as one of the most attractive options.

Now that the end of the year is approaching, banks do not stop bombarding us with their "irresisitable" offers of pension plans, which is why we have decidedYour drawbacks.

Is it worth investing in pension plans?When you finish reading this article you should have a well -formed opinion about it.

Advantages of investing in a pension plan

Without a doubt, the main point in favor of the plans is their fiscal delation.Investing in a pension plan we can save money in short -term taxes, and much.

For a maximum contribution of 8.000 euros a year (it is not possible to contribute anymore, even if you would like), the Treasury can return to 3.600 euros in your next income statement (if you have a 45%marginal type).Since it is logical, at a lower contribution or lesser tax rate, lower tax relief.

This leads us to conclude that pension plans interest, above all, people who have high wages (perhaps from 36.000 euros) or that they are autonomous (and need to compensate for the 15% rickety they retain in their invoices for personal income tax).

The rest of mortals should make numbers to value it.On average, someone who has a 24% marginal type can dismiss up to 240 euros per year for every 1.000 euros that contributes.If it contributes 4.000 euros, would deduct 960.It is not much money, but...It is money.

In any case, the fiscal incentive of the pension plan can be squeezed to the maximum if we reinvest the fiscal savings, that is, if that money we save in taxes we invest again, either in a pension plan or in another product,as an investment fund.

With this video of Marcos Luque you may solve some doubts:

The other great advantage of pension plans is that you can defer the payment of taxes so far from money reimbursement.As the composite interest works, if these deferred taxes are reinvested in the pension plan, an extra profitability is achieved that can become a long -term determinant.

Investment funds also allow deferring taxes, but these count as capital yields, while pension plans are considered work yields.They are completely different prosecutors that we will analyze in the following section.

In short, we have to:

Fiscal Disagreement + Reinversion of fiscal savings + defer tax payment + reinvestment of deferred taxes = violin music.

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Without a doubt, they are reasons of great weight to at least assess the possibility of hiring a pension plan.However, as usually happens with everything that seems too good to be true, there are also some inconveniences.Paper endures everything;reality, no.

Disadvantages of pension plans

Being sincere, I am quite reluctant to pension plans.In my biased and not requested opinion of today, childfar from a global stock market index).

There is an IESE study that corroborates it.It concludes that during the period between the year 2000 and 2015 the profitability of the Mixed Variable Income Pension Plan4.87%.

The difference is abysmal and there are no arguments that can justify it.

However, lately, indexed pension plans to stock market indices with very low commissions (for example, those of Indexa Capital, Finizens or, more recently, Inbestme) are appearing in the market, so that this inconvenience can avoid it not hiring the plans ofpensions that offer most banking entities.

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The second great inconvenience that I see to pension plans is that they are products with a very small liquidity.Being designed for retirement, you will not be able to rescue them before unless a misfortune occurs (labor disability, serious illness, death of the participant, becoming a long -term stop...) or have ten years pass from your contribution.

Eye because the latter has a trick and does not mean that you can rescue your pension plan after ten years, but that the year 10 you can withdraw what you contributed in the year 1, the year 11 what you contributed the year 2 and so on.This illiquidity could carry a headache in the future.

This problem is aggravated if we consider the fiscal ax that would put us hacienda if tomorrow we decided to rescue the pension plan.As we indicated above, their fruits are considered income income (and not capital), so if we rescue an important sum of money in a single year the Sablazo de Dad state in the declaration of the rent next year could haveDantesque proportions.

We all know that to avoid this prosecutor, you have to rescue the money little by little and not suddenly, but we also know that the future is uncertain and we have no idea what we hold.A serious illness or an economic emergency, for example, could put all our financial calculations up and force us to make a fiscally disastrous decision.

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But without a doubt, the main handicap that I find to pension plans is the legal uncertainty that surrounds them.

Taking into account the current situation of public pensions, we cannot rule out that the politician on duty of the future has the great idea of giving hands to private pension plans, "a financial product made for the rich", of changing the audit orto approve any measure that harms the participant.Surely a horde of fans would applaud him.Or maybe I'm going braking with this, I don't know.I don't trust a hair.

So is it worth a pension plan?

Like any complicated question, it deserves a complicated answer: it depends.To begin with, it depends on your personal/family circumstances and how much money they win.If you just want 1.000-1.200 net euros per month, I don't think it's the best possible investment.But if you are above 36K per year or your marginal type is 45%, you can value it.Also if you are autonomous you can benefit you fiscally in the short term.

In any case, I would never contemplate the option to invest 100% of savings in this product.Perhaps it could be used as a complement to investment funds and thus diversify the fiscal issue (labor income together with capital income), but whenever we know how to choose the appropriate pension plan (with low commissions and, preferably, indexed).

However, we must seriously value their inconveniences, especially in what has to do with uncertainty, both personal (we do not know what the future holds) and its legal environment (IRPF types could change, the legislationFrom pension plans, we have the politicians we have...).