Savings / Pensions

 

 The Spanish Pension Model is based on three pillars:

  • The Public Pension System (declining weight).
  • Employment Pension Plans.
  • Individual Pension Plans.

Did you know ...

Did you know thah in Spain:

  • The average pension at retirement is around 1.134 eur under the General Regulation.
  • The average pension for self-employed isa round 674.46 eur.
  • It is estimated that the retirement pension could be 60% of the salary.
  • Individual Plans (third pillar of the Pension model) will be about 40% of our future pension.

It is essential to have complementary savings. New generations are affecteb by reductions in their future pensions. Therefore, it is necessary to start investing in a regular savings plan as soon as possible.

Retirement Solutions

We offer you many possibilities to plan you retirement efficiently. The need for a complementary saving plan is prioritay today. Therfore, we provide you with different saving products: SISP (Systematic Individual Savings Plan), Unit Linked, ASIP (Assured Savings Insurance Plan), Pension Plans, etc. They all will be used to accumulate a capital for the future.

Pension Plans

The latest Pension Reform, and the new Tax Reform -which directly affects Pension Plans- have changed the context of the need to have a Pension Plan.

We can affirm that future pensions will be lower. Consequently, it will be necessary to have a complementary accumulated capital to enjoy a well-deserved retirement.

The new Personal Income Tax Law allows Pension Plans to return to be the best vehicle to channe the savings for retirement.

10 arguments to take out Pension Plan

  • It represents a complement to the Public Pension. The Pension Reform and the application of the sustainability factor may be insufficient to guarantee future pensions. The Private Pension Plans offer additional savings to the Public Pension. The goal is to have a satisfactory pension at retirement.
  • It is estimated that future pensions will be reduced by up to 25%.
  • Attractive tax. Pension Plans, together with ASP, are tax deductible, with a direct reduction in the Taxable Base.
  • The sooner you start saving, the faster it will grow your wealth. It doesn’t matter if initial quantities are small (regular contributions of 50 euros). To start as soon as possible is the most important fact.
  • Pension Plans enable us to preserve wealth and to make savings profitable.
  • Ther are a wide range of alternatives when taking out Pension Plans, from selecting the one that best fits the investor profile to the quantity and periodicity of contributions.
  • Freedom to transfer vested rights.
  • Management Fees: Maximum 1,5%.
  • Personalized advice. GVC Gaesco Sales Representatives will give you an ongoing advice for your investments.
  • There is an option to redeem Pension Plans older than 10 years in advance, but it will be available in 01.01.2025. Commercially, the most important contribution of the Reform is the liquidity of the product at 10 years. Thus, savings will be no longer blocked and Pension Plans will become the main vehicle to save for retirement again.

GVC Gaesco Pension Plans

GVC Gaesco Pensiones allows you to channel the savings for your retirement. Our professionalism and experience in managing pension plans constitute our strengths.

Third Party Pension Plans

We provide you with the best investment alternatives from Third Party Fund Managers.

Assured Savings Insurance Plan (ASIP)

ASIP were launched in early 2003. Since its creation, they are configured as Individual Insurance for long-term savings. They have the same financial and fiscal regime than Individual Pension Plans.

ASIP were created to be a complement to Social Security Pension at retirement. They are Life Insurances designed to generate savings in order to maintain the purchasing power at retirement. They also guaranteed a sum in the event of death or total and permanent disability.

In addition to death and total and permanent disability benefits, it is possible to take out additional coverage: double compensation in the event of death by an accident, and triple in case of a traffic accident.

Systematic Individual Savings Plan (SISP)

This is an individual Life Insurance with minimum 5 year period which allows you to accumulate capital for the future and obtain major advantatges. This product fosters long term savings. It will be used as a Public Pension supplement at retirement.

SISP is configured as a signed contract bewteen Insurances Companies to consitutite an annuity, that is, a fixed monthy income based on the accumulated capital.

The main advantatge of this product is the fact that you can access your money whenever you wish, from the first day, in part or in full and with no fee or expense for availability.

Main characteristics

  • Maximum annual contributions of 8.000 eur.
  • After 5 years from the first premium and received in the form of life annuity, Capital Gains will be exempt from taxes. In this case, reductive coefficients (the ones for Life Insurances) will be applied.
  • Total accumulated balance of the contributions: Maximum of 240.000 eur, equivalent to 30 years of maximum annual contributions (8.000 eur).
  • Regarding the liquidity of the product, the minimum duration of the plan is five years, before starting to receive annuities with exempt capital gains. However, you can redeem the product whenever you wish. In that case, capital gains will be taxed as Savings Income in the Taxable Base.
  • There is no limitation on the number of SISP taken out.
  • Immediate liquidity, with no legal restrictions.
  • Single, periodic and extraordinary contributions are accepted.

Categories

The investor profile determines the kind of SISP:

  • Guaranteed SISP: A minimum interest is guaranteed. Interest is paid periodically, quarterly or annually.
  • Investment SISP: This kind of SISP consists of different investment baskets (investment funds). The policyholder can change from a basket to another freely. He/She can even combine the investment in several baskets.

Coverages

Two different coverages:

  • Survival: If the insured is living at maturity, he/she will receive a payment in the form of life annuity.
  • Death: If the insured dies during the period when the policy is in force, the beneficiaries will receive the accumulated capital.

Tax advantatges

  • Contributions to SISP can not be reduced in the Taxable Base. However, they have a significant tax benefit at maturity: the total exemption of the Capital Gains generated in the accumulation phase, exempted when the annuity is constituted. This exemtion applies only it it is redeemed in the form of annuity (not in the form of capital).
  • Annuities will be considered Capital Gains, included in the Savings Tax Base.

Unit Linked

Unit Linked are Life-Savings Insurances in which the policyholder assumes the risk associated to the investment. Unit Linked also guarantee a coverage in the event of death. A Unit Linked Insurance Plan acts just like a savings vehicle, but also has the benefits of an insurance contract. When an investor purchases units in a ULIP, he or she is purchasing units along with a larger number of investors, just like an investor would purchase units in a mutual fund.

Unit linked Insurance Plans allow for the coverage of an insurance policy, and provide the option to invest in any number of qualified investments, such as stock, bonds or mutual funds. The policyholder distributes the premium among all investment alternatives. When this premium becomes accumulated savings, the policyholder will have the option to change and invest in other investment alternatives inside the product.

These assets are grouped into baskets, with a maximum of ten in each insurance. Baskets have different profiles.

Unit Linked are underpinned by Life Insurances which are provided with an amount of capital in the event of death. They can be Whole Life Insurances or Mixed Life Insurances.