What products are on the market to save for retirement?

There are many savings instruments, but not all of them cover everything that is “required” for this type of savings, which has a very specific purpose.

1-What products are on the market to save for retirement?

To ensure our retirement, there are pension plans and insured pension plans (PPA), which directly cover this need.

-Pension plans:

There are three modalities: individuals, employment and groups. The money that you contribute as an individual is integrated into a pension fund, along with the rest of the people who are also part of the plan. The total capital accumulated in the fund is managed and invested collectively by a management entity, always respecting the criteria of safety, profitability and diversification established by law.

-Insured pension plans:

The insurance company that manages it must offer you a guaranteed minimum interest rate, since this is the basic characteristic of this product, which makes it a very suitable alternative in times of unstable market times, due to its capital guarantee and type of interest.

Pension plans and insured pension plans are the products that enjoy the greatest tax incentives and that will allow you to reduce the amount to be paid in your income statement more significantly. In fact, they represent the only financial instruments that allow you immediate tax deductions.

What types of plans exist according to the profile of your investments?

There are several categories:

Short-term fixed income: Does not include variable income assets. The average duration of the portfolio is less than or equal to two years.

Long-term fixed income: It does not include variable income assets in its portfolio and its assets have a duration of more than two years.

Mixed fixed income: It places less than 30% of its investments in variable income assets.

Variable fixed income: Between 30% and 75% of its portfolio is invested in variable income assets.

Variable income: More than 75% of its assets are in variable income assets.

Guaranteed: These are plans for which there is an external guarantee of a certain performance granted by a third party.

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