Rescue of pension plans at 10 years, this is the new law

Rescue of pension plans at 10 years, this is the new law

The Government changes the law governing the rescue of pension plans . Thanks to the Royal Decree of Modification of the Regulation of Plans and Pension Funds in the Matter of Liquidity and Reduction of Commissions, approved in the Council of Ministers on February 9, 2018, it is established that from 2025 the contributions and returns generated by pension plans that are at least ten years old . That is to say, that pension plan holders will be able to recover in 2025 the contributions made up to 2015 and the generated income if any; in 2026, what is contributed and its yields until 2016 and so on, successively, when the contributions are ten years old.

The measure benefits around eight million participants of private pension plans, who previously had to wait to retire (or who applied the rest of the assumptions included in the law) to be able to rescue their contributions in these plans and that they will now be able to access to the rescue of pension plans at 10 years.

The objectives of the new measure

The objectives of the new measure

The new regulation of the rescue of the pension plans pursues two objectives, as has been pointed out by the government of Spain. First, it seeks to offer more liquidity to pension funds. And, in the second place, it will also regulate downwards the commissions of management of this type of products.

Rescue of employment plans also after 10 years

Rescue of employment plans also after 10 years

Another of the new measures that take effect is to allow the rescue of employment pension plans also after ten years. The measure may be applied as long as the specifications of the plan allow it. Until now, the rescue of contributions could be made in the case of having reached retirement, if you suffered a serious illness, in cases of long-term unemployment, disability, dependence or in the event of death of the participant or beneficiary designated, and provided these contingencies and exceptional liquidity assumptions were contemplated in the specifications of the Plan.

Finally, the maximum annual amount in the reimbursement of pension plans has been regulated, so that any contribution that reaches 10 years after 2025, may be settled if the participant so wishes. This is intended to increase the liquidity of the product and make it more attractive for young people, usually reluctant to the liquidity constraints of the plans.

We put at your fingertips the best tools for you to make the best decision about your future

  •  Pension plan simulator
  • Calculate and plan your contributions to improve your retirement.
  •  How much does a pension plan deduct?
  • Know how much you will deduct in the income statement thanks to your contributions.
  •  Investment calculator
  • Calculate what profitability you could get with your investments.

 

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