One of the objectives you have at the moment is to develop a strategy to boost your pension when retirement arrives. For this, you will have no choice but to allocate a part of your income every month and that will depend on your needs and the expenses that are contemplated in your personal or family budget. In any case, it will be another new disbursement the one you have from now on. So that in your golden years your pay is higher than what is contemplated from a public pension.
In this general context, it is very clear that you have many options and all of them can be very favorable to your general interests. Due to the fact that in the end you will have higher income than those contemplated by the official system of the current pensions. In this sense, you cannot forget that different economic organizations have been recommending a greater individual contribution that will depend on the personal circumstances of each of the savers.
For this goal to be finally possible, there will be no other solution than to prepare a savings bag from now on. From this approach, we are going to expose you some of the solutions that you can give them from now on. From some more aggressive plans to others of a more defensive or conservative cut that have a single common denominator, which is arriving at the moment of retirement in a better economic position than before. For this reason it is very important that you make a plan from any financial product. From this approach we are going to expose you some of the best ideas in this regard.
Pension plan: dividends
This strategy can be carried out from the purchase and sale of shares on the stock market. Through the distribution of dividends that generate a return that ranges between 3% and 8% through a fixed and guaranteed payment every year. Whatever happens in the financial markets and so that in this way you can develop a savings portfolio in the long term. This way it can help you so that when your retirement time comes you have additional income that can complement your public salary. Through one or two payments that are executed in the same year and that in any case can help you to have greater purchasing power from that moment in your life.
On the other hand, you cannot forget that through this unique strategy you will be able to choose the security that is responsible for carrying out this payment to the shareholder. It can be done from the most conservative or defensive values in the Ibex 35 to the most aggressive so that they can be adjusted to your profile as a small and medium investor. So that in this way, in the golden years you can charge a bonus of 200, 300 or 400 euros. Depending on the capital you have invested to execute this strategy in taking positions in the equity markets.
Investment fund portfolio
This is another of the options you have at the moment to raise your salary at the time of retirement. From this investment approach, you can choose the type of financial asset to which you link this payment. That is, from the equity markets, fixed income or even from alternative models. Through the different formats that the managers have designed, both national and from outside our borders. In this case, what you will achieve is to create a savings bag so that you can have them at any time of this important moment in your life.
In addition, you can not forget that investment funds also contemplate the payment of dividends. Both in their version of variable income and in fixed income and that in both cases can reach up to 6%. And that you will receive through various types of payments that you can choose based on your needs to provide you with liquidity at the precise moment your retirement arrives. With a mechanism very similar to that in relation to the purchase and sale of shares on the stock market, both in its structure and in the amount of these amounts. Although the offer is not yet the majority since only 5% of funds of these characteristics involve the distribution of these income.
Long-term taxation
Although many investors are unaware of it, this type of investment can be used from now on to create a stable savings bag. Although it is true that under a minimum profitability, although at least it will serve so that you can make the savings profitable. Not surprisingly, this is a financial product that offers an interest rate that ranges from 0,30% to 1,75%. That will go to the balance of your savings account at the precise moment of its expiration, with the advantage that you can renew at that time. As long as it is a fixed-term bank deposit that is not promotional or punctual in nature.
In addition, this class of banking products is distinguished in that the interest is always guaranteed, whatever happens in the financial markets. Therefore, it can be a good option in the most adverse times for international stock markets. From this investment approach, you can get a minimum amount for when the time comes to collect your public pension. With the additional sale that you will be able to make the monetary contributions that best suit your real needs and also depending on the income you have at each moment. Without being able to cancel the contributions unless in some cases they are penalized with commissions of up to 1,5%. Although the offer is not yet the majority since only 5% of funds of these characteristics involve the distribution of these income.
Savings insurance
It is one of the great unknown by small and medium investors and it is based on regular contributions that you have to make every month or at least in most of them. Savings insurance has the great advantage that you can withdraw them at the time you think is appropriate. While on the other hand, you can perform the contributions in a very flexible way since you can modify it in each of the periods. To the point of creating a savings bag for when the golden years arrive or a little later.
Another aspect that you should value in this very special financial product is the fact that it includes a tax treatment more favorable to your personal interests. As well as the ways to execute the redemptions of the amounts you want each year or in another period of time. Without you being obliged at any time to subscribe a fixed amount every month, as happens in other financial products of similar characteristics. It also gives you high liquidity for when you need the money in these years of your life. This is a savings model, which you can not only subscribe through a credit institution, but also through the offers that insurance companies have been making.
With proposals that are distinguished by being very uniform among themselves and that on the other hand are exempt from commissions and other expenses in their management or maintenance. With the savings that this operation entails that other products for saving or investment have, and that is, after all, other of your more immediate objectives. And that they can also serve you to meet the needs you have at the time of retirement under the format that you consider most appropriate from now on.
Pension plans
The Pension Plans continue to generate very satisfactory returns in all terms and in all categories. Within 1 year, high-duration fixed-income Pension Plans present returns above 3,7%, and even higher than 5,6% per year in the case of Guaranteed Plans. In any case, the Variable Income Plans stand out, with a 9,5% profitability in the last year. On average, the Pension Plans obtain returns of 4,6% in the last year, fully recovering the adjustment of the last months of 2018.
With regard to the long term, the Individual System Pension Plans record an average annual return (net of expenses and commissions) of 3,26% and, in the medium term (5 and 10 years), they present a return of 1,8 , 2,9% and 275,2% per year, respectively, according to the latest data provided by the Association of Collective Investment Institutions and Pension Funds (Inverco). Where it is shown that the estimated volume of contributions and benefits in October would be: gross contributions of 254,9 million euros and gross benefits of 20,3 million euros, with which the volume of net contributions for the month would reach the XNUMX million euros.