Retirement plans are saving tools intended for being used after retirement. Due to the current financial situation and the fact that the public pension system is progressively weakening, the possibility of hiring a private savings system becomes something necessary. Although it must be remembered that its goal will be never be replacing the Social Security benefits, but complementing them.
But they are not a simple deposit system for savings, it is also an investment, because retirement plans are part of the most known pension funds, capital stock managed by companies which invest in several financial market values in order to obtain profits.
According to what kind of investment does the pension fund designated to manage your retirement plan, you can differentiate:
Retirement plans have a great advantage, which is the tax saving. They can reach up to a 50% reduction in the tax base upon income. In return, you have the lack of liquid funds it generates, because invested funds will not be recovered until the moment of retirement, except in some particular cases.
You must have in mind that retirement plans have a specific goal, which is to assure an income the moment the holder retires. That is the reason why they use to be conservative in the stock market and if what you intend is looking for high profitability, it is better to choose other financial products.
Other articles relating banks
Los bancos más grandes en 2012
Banks that offer second chance banking
