If you have ever wondered when to start saving for retirement, the answer is simple: as soon as possible. Why? Because the more time you spend saving, the more time your savings have to work for you. Persevere with your saving and seek advice if you have doubts.
The best way to start building up capital for the future is to do so as soon as possible and in a constant and systematic way, making regular contributions. In other words, time and perseverance are essential when saving for retirement.
It is important to keep in mind that the sooner you start to save, the more money you will have working for you. It's about giving your savings time to grow. If you start early, the effort that must be made is less and the accumulation of capital for retirement is greater. Why? Because, among other aspects, when investing in the long term the expected increase in the value of equity investments is greater.
It is essential to obtain advice and understand, for example, what state pension you will receive when you retire. This is why we have a pension calculator, which makes an accurate estimate of the amount. This provides new information that can be used when making decisions about the retirement saving strategy that should be adopted. Undoubtedly, adequate planning of savings helps to maintain your standard of living once retired.
Pension plans, systematic individual savings plans (PIAS) and individual insurance policies for long term saving (SIALP) are three private savings tools that will help you to plan for your future retirement correctly.
Through flexible systematic contributions, the holder can generate capital for the future. The return will be based on the linked investment.
Immediate. It allows partial and full redemption, and the redemption value will be based on the market value of the investment.
Important tax advantages if a life annuity is chosen, at least 5 years after the first contribution.
Through systematic and flexible contributions, the holder can generate capital for the future. The return will be based on the guaranteed technical interest rate.
Immediate. Only full redemption is allowed.
Important tax advantages if, at the time of redeeming the capital, at least 5 years have passed since the first contribution.
Frequently asked questions
VIDACAIXA S.A. DE SEGUROS Y REASEGUROS, like all other insurance and financial institutions, is required to have an up-to-date copy of the current identification documents of customers to comply with the provisions of Law 10/2010 on the Prevention of Money Laundering and Financing of Terrorism.
The insurance institution must have the required documentation before 30 April 2015. If this is not the case, the products that have been taken out with our company will be blocked.
In the case of retirement:
When you retire, you will have to decide how and when you want to collect on your plan by contacting your branch of "la Caixa".
If you do not have entitlement to retirement (due to the fact that you have never paid social security contributions, etc.), the contingency will be deemed to have occurred after the ordinary retirement age in the General Social Security System (65 years), at the time when the participant does not work or has ceased working and is not contributing towards the retirement contingency in any social security system. However, the benefit may be paid in advance as from:
- age 60
- age 45, if the policy holder is disabled
In the case of disability:
The plan may take effect in the event of total and permanent disability for the usual occupation, or absolute and permanent for any type of work, or severe disability.
In the case of death:
In the event of death, both in the period in which the contributions are made (participant) and in the period in which benefits are received (beneficiary).
In the case of serious illness:
When it is accredited with a medical certificate from the Social Security or an approved body:
a) any physical or mental illness that temporarily incapacitates the patient for a continuous period of at least 3 months and that requires a major surgical intervention in or treatment at a hospital.
b) any physical or psychological illness or injury with permanent consequences that partially limits or totally prevents the usual occupation or activity, whether or not assistance is required from other people.
In the case of long-term unemployment:
When the participant is legally unemployed (not voluntary), provided that he or she is registered with the National Employment Institute (INEM) or the competent body and does not receive contributory benefits.
In the event of death, either during the period in which the contributions are made or in which an annuity is already being received, the accumulated balance will be paid to the spouse, children or any other person who has been named by the policy holder.
As a capital sum:
All accrued consolidated rights are paid in the form of a one-off capital sum.
As a financial income:
This consists of an income, the amount and frequency of which (monthly, quarterly, half-yearly) is decided by the customer and which is paid until the accumulated balance is exhausted. The balance outstanding or part of it may be paid at any time, in which case the subsequent annuities will not be paid until the balance advanced has been offset.
As a capital sum and financial income (mixed):
One part is collected in the form of capital and the other part in the form of financial income.
As an assured income or as an insurance:
It is possible to receive an annuity for life, for one or two lives, and with or without life insurance. Furthermore, if you wish, you can choose to take out an annuity for a certain period of time, but without capital on death.
A pension plan is a product that allows you to save in a convenient way so that you can have a capital sum or an income at the time of retirement or in the event of invalidity and in the event of death, so that your beneficiaries can receive it.
But also, at the moment, pension plans are the product that allows you to obtain the maximum tax saving in your income tax return.
Maximum annual contribution:
The maximum annual contribution you can make is €8,000.00.
This limit includes contributions to all pension plans, insured benefit plans, company benefit plans, certain Mutual Benefit Societies and private insurances that exclusively cover the risk of severe dependency or major dependency, and also includes company contributions.
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