What you need to know about retirement insurance

Among the various products aimed at supplementing public retirement pensions, retirement insurance has taken on an increasingly important role in recent years. Let’s know more about this type of retirement savings model.

In the last two decades, fundamentally after the turn of the century, the concern to find good saving tools has become almost an obsession for many people. This makes a lot of sense if we realize that the future of public pensions does not seem very flattering.

The different retirement savings options have incorporated insurance as a useful tool, and more and more demanded. These are savings products combined with life insurance in which, as we will see, there are different varieties and types that can be practically adapted to each draft profile.

Retirement insurance

As already indicated , retirement insurance has been growing strongly over the last few years as part of the preferences of savers looking at their pensions with concern.

This effectively has to do with that growing concern about the future of public pensions , but also with an increasingly critical reading of other products such as pension plans and a significant growth of positive valuation of life insurance and savings .

It should be borne in mind that pension plans, which are still widespread, do not represent a definitive answer, let alone the real need to supplement public pensions; worse, it has been demonstrated over time that a large part of the recruitment of Pension plans were oriented exclusively in their deferred taxation or even in the contracting in battery with other products, like mortgages . This has generated a scenario in which many pension plan subscribers do not even know the type of plan they have, let alone their evolution over time.

In this context, life and savings insurance takes the form of savings plans that occupy an increasingly higher market share, both in terms of their own characteristics and guarantees and because it is a clear product, with very specific conditions and with Few double readings or small print.

How Insurance for Retirement Works

The operation of this type of insurance is very similar to that of guaranteed savings products , ie part we will make a guaranteed profit in advance, we will make our contribution or contributions and we will respect a specific period of time to obtain the profitability quoted. It is true however that we can find other variables within the proposals, so it is basic to pay close attention to the particular conditions of the product that we are going to offer.

On the other hand, it is important to know that retirement savings insurance does not offer the same immediate fiscal treatment as pension plans, that is, they will not be unpleasant in the IRPF with deferred taxation. However, at the time of the redemption of the capital or income obtained we will only be obliged to the statement on the capital gains obtained, this becomes especially important in the case of annuities.

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