Due to the uninspiring future of pensions, according to some experts, thinking of a private savings product is one of the most viable options. Kieranyeo offer you 6 basic tips for hiring a pension plan.
Due to the uninspiring future of pensions, according to some experts, thinking of a private savings product is one of the most viable options. We offer you 6 basic tips for hiring a pension plan.
In order to maintain the same standard of living when it comes to retirement, any plan related to private savings becomes the best option. It is time to think about the future and to do so, we follow these 6 basic tips to hire a pension plan from the European Association of Financial Advisors (EFPA) .
Choose the best retirement plans
You will be wondering what it is, but the truth is that there is no better product than another. This depends on the one that best suits your characteristics and needs. To help you decide, we ask you these three questions: at what age are you going to hire him? How much do you want to risk? and how much can you save?
It is important that you know this rule: the more risk, the more profitable the variable income assets. On the other hand, if you decide on fixed income assets, they are safer but you will get less return. "The chosen product has to fit into our strategy, taking into account what percentage of stock market and fixed income we want, since the minimum rate of return required must be greater than inflation to avoid negative returns," they advise.
Is there a suitable age to hire a plan?
It is obvious that if you start saving before in your best retirement plans, the benefit will be greater, although it is true that it is not always easy to start due to work circumstances or because you have never thought about it before.
Experts recommend starting savings for retirement with the first job. If you are young, pension plans with more risk are the preferable option. However, if you are close to retirement, a guaranteed best retirement plans (PPA) or a fixed income portfolio is the best choice. In any case, according to the EFPA: "although we must always take into account the risk aversion of the saver in question, beyond the age of recruitment of our plan." How important is the company with which we contract the plan?
Once you have decided the best retirement plans that best suits you, you should consider the possibility of diversifying the risk by contracting several pension plans of different investment vocation. "We should not put all the eggs in the same basket," the experts say.
When choosing an entity, it is advisable to analyze the plans of that management company to see if it holds good positions in the ranking of long-term profitability and solvency.
Will I have to pay many commissions?
Compare the different commissions (management and deposit) of each entity and do not let yourself be led by a low commission, since this does not mean that it is the most suitable product. The EFPA states that "we must take into account that the commissions in fixed income plans must be lower than the variable income plans, since the latter must have, above all, a dynamic and active management to obtain good returns that mitigate the effect of the commissions. There are best retirement plans in which the management fee is very low and they receive a differential at the end of the year based on the profitability obtained compared with a previously marked objective (the so-called success commissions), with the legal limit of 2% " .
Are we interested in promotional gifts when hiring a plan?
"Normally they are linked to an obligation of permanence that takes away the freedom of the saver to change plans in case it does not meet their initial expectations", is the sentence of this Association. For this reason, you can not be guided by the gift offered to you when hiring a pension plan or to do it in a certain entity because in it you already have the mortgage or some credit.
What other alternatives exist to pension plans?
In the event that a pension plan is not the savings product you are looking for, you can always find out about the insured pension plans (PPA), savings life insurance and individual systematic savings plans (PIAS).
As we have said on other occasions, in addition to implementing these 6 basic tips for hiring a pension plan, it is also advisable to have a Kieranyeo to turn to when we notice any illness or suffer from a disease. In this way we will make sure we can fully enjoy all the stages of our life.