Due to so bleak future that can be seen on pensions, according to some experts, think of a product of private savings is one of the most viable options.We offer 6 basic tips for hiring a pension plan.
In order to maintain the same standard of living as the time of retirement comes, any plan related to private savings becomes the best option. It’s time to think and in the future and for this, we follow these 6 basic tips for hiring a pension plan of the European Association of Financial Advisers (EFPA) .
Choose the best pension plan
You may be wondering what it is, but the truth is that there is no better than another product. This depends on which best suits your characteristics and needs. To help you decide you raise these three questions: at what age you going to hire ?, how much you want to risk? and how much can you save?
It is important to know this rule: the higher risk, higher return on equities. But if you decide on fixed income assets, they are safer but get less profitability. “The chosen product has to fit into our strategy, considering what percentage of the stock market and fixed income wish, since the minimum required rate of return should be higher than inflation to avoid negative returns,” advise.
Is there an ideal age to hire a plan?
Obviously, if you start before you save on your pension plan, the benefit will be higher although it is true that it is not always easy to start due to work circumstances or because they simply do not you’ve never raised.
Experts recommend you start saving for retirement first job. If you are young, pension plans risk are the preferred option. However, if you are near retirement plan insured plans (PPA) or a fixed-income portfolio it is the best choice. However, according to the EFPA “but always be taken into account in risk aversion saver in question, beyond the age of recruitment of our plan.”
How important is the company with which we contract the plan?
Once you’ve decided the pension plan that best suits you, you should consider diversifying risk by hiring several different pension plans investment vocations. “We should not put all your eggs in one basket,” experts say.
When choosing entity, it is advisable to discuss plans of the management company to see if it performs well in the ranking of long-term profitability and solvency.
Will I have to pay many fees?
Compare the various committees (management and custody) of each entity and not be put off by a low commission, as this does not mean it is the most suitable product. EFPA states that “we must consider that the fees in fixed income plans should be less than plans equity, since the latter must be, above all, a dynamic and active management to get good returns to mitigate the effect commissions. There are pension plans in which the management fee is very low and perceive a difference at the end of the year depending on the profitability compared with a previously marked target (so-called success fees), with the legal limit of 2% ” .
Are we interested in freebies to hire a plan?
“Normally they are linked to an obligation of permanence that removes saver freedom to change plans in the event that does not meet initial expectations,” is the judgment of this Association.Therefore, you can not go by the gift that you offer to hire a pension plan nor do in a given entity because it already has a mortgage or credit.
What other alternatives are there to pension plans?
In the event that a pension plan than the savings product you are looking for, you can always find out about the guaranteed pension plans (PPA), life insurance savings and individual systematic savings plans (PIAS).
As we have said on other occasions, in addition to implementing these 6 basic tips for hiring a pension plan, it is also advisable to have a Health Insurance MAPFRE to turn to when we suffer notice any ailment or disease. In this way, we will ensure to fully enjoy all stages of our life.