Two years ago, Manager cut 75% of the tax benefits of individual retirement plans and made companies more flexible in their requirements to encourage hiring.
Employment retirement plans gained immense popularity years ago, but their number has dwindled because of the cost companies have had to bear. According to KPMG’s sixth report on the state of pensions in Spain, Only 28% of Spanish companies offer this tool to their employees.
For the government, this method of saving is more accessible to young people who have less income to pay for the individual pension plan, and is also beneficial for companies as it is taxable. For this reason, Two years ago, it cut 75 percent of its tax benefits. private pension plans and companies have made their requirements more flexible to encourage their hiring. While the contribution limit that can be made to the individual pension plan until 2020 was determined as 8,000 Euros per year, the Budget Law reduced this figure to 2,000 Euros in 2021. year. This was the reason why 15,000 retirement plans disappeared.
Regarding corporate pension plans, It is now possible to reach 10,000 Euros per year with the sum of the contributions of the company and the worker. also commissions are 1% lower than individual commissions, which is 20% less in the long run. “With new employment retirement plans, in addition to being deductible, companies are given bonuses as Social Security contributions,” explains Diego Valero. “Now that it has become easier for them, we will be able to see a growth in the number of corporate pension plans,” he adds.
Of course, these companies and Presenting this product to your staff is not always easy, especially if they are SMEs.. The final deal includes the development of employment retirement plans, though it doesn’t specify how. One possibility that has been considered and is already being implemented in other countries is to use the salary increase for the business plan. It is a countermeasure against the impact of inflation and wage increases in companies that allow the employee to maintain liquidity and at the same time not expose the company to further expenses. Currently, the construction industry is a pioneer who endorses this method with collective bargaining for its workers.
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Experts Supporting the promotion of company pension plans instead of individual pension plans. According to a study by the Bank of Spain on owning these financial instruments, employees manage to save up to 66% more this way. “It depends on your ability to save, but if you only want a financial product and you want to save 100 Euros per month, the employment plan is a good option,” explains Eva Valero. And with the new regulations, the self-employed are also covered by employment pension plans with contributions of up to €5,750 per year. “The sooner they hire them, the sooner they’ll be able to save money,” adds she.
Appropriate inheritance management
You may have saved enough, but you still want to improve your quality of life. The real estate market offers a variety of options to extend fixed or variable income investments as well as supplement your pension based on your particular situation. “From age 65 onwards, the capital gain from the sale does not need to be declared, a net result and more liquidity from the sale of any other asset,” explains Guerrero.
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Reverse mortgage. The first is reverse mortgage, in which an insurer provides money to create debt on the home. “The advantage is that you continue to live in the house, and when the person dies, the heirs will decide whether to pay the debt incurred,” explains Eva Valero. It is a product that has traditionally failed to work in Southern Europe due to the desire for inheritance, although it has been forced into offering in recent years. “A person with enough assets usually doesn’t make a reverse mortgage because they don’t need it and they want to pass it on to their children,” Satrústegui says. According to experts, the demand for this product may increase due to the arrival of new generations.
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Bare property. If there is no future plan to inherit the house, there is bare ownership. It consists of selling the real estate asset and using it until the death of the owner. It is a financial instrument that provides tax benefits depending on the autonomous community and its size. “If it’s your habitual residence, you don’t pay capital gains to the Treasury, and if it’s a second home, it’s equally as long as the money is converted into rent,” says Suárez.
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real estate life annual income Finally, if these measures fail to cover the costs, people have the option to enter into a real estate life insurance contract in which they receive a monthly income in exchange for transferring ownership of their home. For Amoedo, “the ideal product for retirement” as long as “this level of income is needed”. Owners will be exempted from household expenses such as IBI.