When we’re young we don’t normally worry about retirement, we’re more concerned about how to earn more income in order to have fun and lead a comfortable life.
Usually, people start worrying about retirement when they reach the age of 50. It’s a mistake. You should begin saving for your retirement as soon as you start working.
It’s very likely that the future pension system will be completely different from the one we have known. The current job environment, with high unemployment rates, the decline of jobs for life, low pay and the late integration of young people into the job market, is putting the future of our pensions at risk.
If we add to that an ageing population, it’s safe to say that the current public pension system may be unable to pay our future pensions.
To deal with this situation, governments are faced with two options: increasing pension contributions or reducing pensions. Or maybe both at the same time.
Take action immediately. You need to save a lump sum little by little, year after year, to complement your estimated CASS pension, so that you can afford a decent standard of living when you retire.
How can you do this? By investing in products specially designed to save for your retirement: pension plans and retirement savings plans.
Pension plans are a saving/insurance vehicle that allows you to save a lump sum for your retirement.
A pension plan can be defined as a collective contract. The amounts paid into the plan by many small investors concerned about their retirement are pooled together, and the funds are invested by a professional manager in those markets and asset classes that are considered most appropriate based on the level of risk the investors are prepared to take.
Pooling together the savings of many investors means a larger amount of funds can be managed, which allows for greater diversification of assets and more cost savings than an individual investment.
Pension plans are designed to be redeemed on retirement, which means that investors cannot withdraw their money until that time, except in special cases (long-term unemployment, death, etc.).
Retirement savings plans are individual insurance contracts which allow you to withdraw your money at any time, provided you meet the criteria set out in the initial contract. If not, you can withdraw the funds before maturity subject to paying a penalty. This penalty can act as an incentive to not surrender the plan and continue saving towards your retirement.
Retirement savings plans offer a lower return but are less risky.
Please note that MoraBanc offers both types of plan. We provide flexible pension plans and retirement savings plans which are tailored to meet your individual requirements.
AndorJubilació is our retirement savings plan. A plan that avoids any unpleasant surprises as it delivers a guaranteed minimum return every year. It also pays out a lump sum in the event of the insured’s death and offers absolute and permanent disability cover.
You can also contact your MoraBanc branch or call +376 884 884 to inquire about our range of pension plans tailored to suit your investor profile.