Pension plans

PPA Savings plan

The best retirement is that which is guaranteed

PPA Savings plan

What is PPA Savings plan?

Our PPA Savings plan is designed to supplement your retirement, without depending on the evolution of the markets, since it offers guaranteed interest rates and you will, in turn, receive additional returns from the investments made in the plan. Particularly designed for savers who do not want to assume any risks.

Benefits of this savings plan

Having a PPA Savings plan has numerous benefits that will facilitate how you save:

Thinking of your future

Maintain the quality of life and purchasing power you want for when you retire, supplementing the income you receive from the public pension system in a safe, simple way with minimum returns guaranteed.

Save at your own pace

You can adapt the contributions to your current personal circumstances and finances, so establishing this capital involves minimal effort.

Transparency

When you retire, you will receive the guaranteed capital plus the interest generated, which will be communicated to you on a quarterly basis. In addition, you can contact your personal manager at any time to ask them about the situation of your PPA Savings.

Tax advantages

This is a product with very favourable taxation, since you will be able to benefit from tax deductions on your annual tax return (IRPF), deducting the contributions made, within the limits set by law.

Contingencies

Situations envisaged:

The insured pension scheme, PPA Savings, establishes a number of situations and contingencies for payment to be made, such as:

The retirement of the policy holder or equivalent contingency: at the time of retirement according to the corresponding Social Security scheme, whether at standard retirement age, in advance or at a later date.
Permanent disability: where this corresponds with the policy holder's habitual profession, or whether it is permanent and absolute for all kinds of work, or a severe disability. All specified scenarios according to the Social Security scheme.
Severe dependence: in the case of the policy holder being severely or highly dependent, with respect to the scenarios laid out by legislation in force.
Death of the policyholder: in the event of the death of the policyholder, the contributions can be redeemed.

Other scenarios

As well as the these scenarios, there are other exceptions that trigger the consolidated rights in the plan, such as situations of prolonged unemployment of at least 12 months, or a serious illness.

There is also an option to pay the amount corresponding to contributions made at least ten years previously in advance, after 1 January 2025.

Charging methods

The possible charging methods for contributions to the Insured Pension Plan can be:

Capital: consisting in the payment of a lump sum for the full amount of the consolidated rights in the scheme.
Income: in the form of periodical payments.
Mixed: combining one lump sum payment with periodical income payments.

Returns on the PPA or insured pension plan

PPA Savings offers a guaranteed minimum interest rate during the full term of your contract.

This combination makes it a savings and retirement system that is not affected by the markets, thus contributing to the guarantee of returns in a safe environment.

Thus, contrary to what happens with other products, there is no uncertainty whatsoever with the PPA Savings since it can never present negative returns when redeemed.

Taxation of the PPA (insured pension scheme)

Taxation with our Insured Pension Scheme, PPA Savings, offers significant benefits, as it allows you to deduct all the contributions made from your personal income tax base. In this respect, the tax base is significantly lower. The limit applied for this deduction is 8,000 euros per year. This amount is deductible in its entirety, provided that it does not exceed 30% of the amount of income from work and financial activities.

On the other hand, when redeemed, regardless of the method you choose for payment of the same (capital, income or mixed), it is taxed as earned income.

1 /6

This number is indicative of the risk of the product; 1/6 implicating a lower risk and 6/6 a higher risk

Alerts on liquidity

Paying out the provision and exercising the redemption right are only possible if any of the exceptional liquidity contingencies or scenarios takes place, as governed by the regulations on pension plans and funds.

FAQs

Who is this plan for?

This savings and retirement plan is aimed at anybody who would like to supplement the funds provided by Social Security, to ensure that they can maintain their current standard of living during retirement.

When can I withdraw my savings?

When you retire you can withdraw the insured capital and the profits generated. If you need to make a redemption prior to your date of retirement, this plan includes scenarios for disability, death or dependence as contingencies for which you can redeem the insured capital.

What are my options with respect to the contributions?

Choose the contribution method that works best with your circumstances and objectives, selecting between the following:

Periodical constant or increasing premium.
Single premium.
Extraordinary contributions whenever you choose.

Can I transfer my current pension plan to PPA Savings?

Yes, and it's simple and free of charge, given that regulations for these kinds of saving schemes include the ability to transfer plans at any time.

Why take out a PPA Savings plan?

Tax benefits

You will be able to deduct the contributions made to your Insured Pension Plan (PPA) from your personal income tax (IRPF) base, with a limit of 8,000 euros a year.