{"id":13150,"date":"2024-05-30T07:00:55","date_gmt":"2024-05-30T05:00:55","guid":{"rendered":"https:\/\/www.joaquinmone.es\/?p=4759"},"modified":"2025-09-10T14:46:45","modified_gmt":"2025-09-10T12:46:45","slug":"practical-guide-on-how-to-withdraw-from-a-pension-plan-or-how-not-to-do-so","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/guia-practica-sobre-como-rescatar-un-plan-de-pensiones-o-como-no\/","title":{"rendered":"How to redeem a pension plan? Everything you need to know"},"content":{"rendered":"<p>The majority of customers who take out a pension plan do so with the intention of <strong>to save and be able to access that money when they retire<\/strong>. As you may already know, this product involves making regular contributions to obtain a certain return on the money invested, as well as tax advantages.<\/p>\n<p>As savings and investment advisors, we believe that this is a good long-term savings mechanism, even though <strong>there is a great deal of ignorance about how to redeem a pension plan<\/strong> and when it is possible to do so.<\/p>\n<h2>What is surrendering a pension plan?<\/h2>\n<p>In case it was not clear to you, when we talk about withdrawing from a pension plan we are referring to <strong>recovering the money you have been saving<\/strong> over the years.<\/p>\n<p>This sum can be recovered in different ways, depending on the individual's personal and tax circumstances. But if you want to minimise the tax impact and maximise the return on your savings, it is important to be aware of all the options available to you.<\/p>\n<h2>When can a pension plan be withdrawn?<\/h2>\n<blockquote><p>So, how can a pension plan be withdrawn? The most common way is to do it at the time of your <strong>retirement<\/strong>.<\/p><\/blockquote>\n<p>However, there are also other exceptional circumstances in which you can access these savings.<\/p>\n<h2>In which cases can a pension plan be withdrawn?<\/h2>\n<p>In addition to after retirement, you can withdraw from your pension plan in any of these cases:<\/p>\n<ul>\n<li><strong>Long-term unemployment<\/strong><\/li>\n<li><strong>Permanent incapacity for work<\/strong><\/li>\n<li><strong>Severe or high dependency<\/strong><\/li>\n<li><strong>Death<\/strong><\/li>\n<\/ul>\n<p>If you are in any of these situations, you will need to plan your rescue properly to avoid unpleasant surprises.<\/p>\n<p>In addition, since 2018, a new liquidity scenario has been created, which means that from January 2025 it will be possible to recover the part of the pension plan whose contribution has been paid in for more than 10 years.<\/p>\n<h2>Is it compulsory to withdraw from a pension plan when you retire?<\/h2>\n<p>In any case, even if it is possible, you should know that <strong>it is not compulsory to withdraw from a pension plan at the time of retirement<\/strong>.<\/p>\n<blockquote><p>In fact, in many cases, it may be more beneficial for you to postpone the surrender in order to reduce the tax impact. Some people, for example, decide to bequeath their pension plan to their heirs in the event of their death.<\/p><\/blockquote>\n<h2>How much do I have to pay to the tax authorities for withdrawing a pension plan?<\/h2>\n<p>The amount you will have to pay to the tax authorities for surrendering your pension plan depends on several factors, including:<\/p>\n<ul>\n<li><strong>How you decide to rescue it<\/strong>: capital, income or mixed.<\/li>\n<li><strong>Your taxable income in the year of redemption. <\/strong><\/li>\n<\/ul>\n<blockquote><p>As we said, the best thing you can do before rescuing it is to plan carefully, preferably with an advisor such as <a href=\"https:\/\/pibgroupiberia.com\/en\/\">PIB Group Iberia<\/a>. By studying your needs and your financial situation, we can prevent you from having to pay more tax than necessary.<\/p><\/blockquote>\n<p>As it increases your earned income, it is important to know when to redeem it. Here are some tips on how to do this.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-57612\" src=\"https:\/\/pibgroupiberia.com\/wp-content\/uploads\/2024\/05\/como-se-puede-rescatar-un-plan-de-pensiones.png\" alt=\"how to redeem a pension plan\" width=\"800\" height=\"600\" \/><\/p>\n<h2>Mistakes when withdrawing from our pension plan<\/h2>\n<p>In Spain there is a huge lack of knowledge about how to redeem a pension plan, but why exactly is this? Well, among other reasons, it is due to the low financial culture in our country and the constant search for short-term profit, as well as the lack of advice from banks.<\/p>\n<blockquote><p>When the time comes for retirement and we decide to withdraw from our pension plan, <strong>we all want to pay as little as possible to the tax authorities<\/strong>. Most clients know that the contribution is tax deductible, but do not know how to recoup the investment.<\/p><\/blockquote>\n<p>On the other hand, there is a widespread perception that these schemes are a \u201cscam\u201d that leads to losing money because, by the time you go to get it back, it has been halved. <strong>Nothing could be further from the truth: if this has happened to you, it is because you have not been helped to do things right.<\/strong><\/p>\n<p>In fact, it is the best product for high-income earners to get tax benefits. For example, if your annual income is around 70,000 euros and you contribute 5,000 euros to your pension plan, you could avoid having to pay up to 2,250 euros to the Treasury on your next year's tax return - that's a lot of money!<\/p>\n<p>So what is the biggest mistake we can make when it comes to withdrawing from a pension plan? It is clear: <strong>What we must not do under any circumstances is to redeem all the money at once.<\/strong>, The pension scheme, i.e. in one lump sum, upon retirement.<\/p>\n<p>The reason? If we recover a large amount from that plan, that amount will be added to our income for that year, so we will have to pay a lot more tax. We may even become a part of the <strong>final personal income tax bracket<\/strong>!<\/p>\n<h2>Advice on the best way to recover your pension plan<\/h2>\n<p>So, how can I withdraw a pension plan in order to pay less to the tax authorities? Is it possible?<\/p>\n<p>Of course you can! We're going to give you a few tips on how to pay less tax when withdrawing your pension plan:<\/p>\n<ul>\n<li><strong>To begin with, it is usually wise not to withdraw from the pension plan in the same year you retire. <\/strong>The last salary tends to be higher than the amount of the pension. This is why, in order to start from a lower taxable base, it is advisable to plan the redemption one year after retirement.<\/li>\n<li><strong>On the other hand, it is advisable to take advantage of the 40% exemption for pre-2007 contributions. <\/strong>If you made contributions before 31 December 2006, you have a great tax advantage: the 40% reduction of your contributions. However, the period is limited to 2 years. The ideal is to redeem the subsidised part earlier with this exemption to take advantage of this benefit, but making sure that we are not moving to a tranche that is too burdensome.<\/li>\n<li><strong>The best thing to do is to go for what is known as a \u201cmixed rescue\u201d. <\/strong>This means recovering part in the form of capital to take advantage of the 40% reduction and the rest in the form of income, i.e. little by little.<\/li>\n<\/ul>\n<blockquote><p>If, on the other hand, you were to make a full surrender, you would automatically move into the higher personal income tax bracket, as mentioned above. You would be paying more than the 40% in tax on a large part of your pension plan.<\/p><\/blockquote>\n<h2>Conclusions on the surrender of a pension plan<\/h2>\n<p>Since we created our <a href=\"https:\/\/pibgroupiberia.com\/en\/seguros-inversion-ahorro\/\">Savings and Investment Department<\/a>, More and more people are placing their trust in PIB Group Iberia for the recovery of their pension plan. There are many clients who, even if they have between 300,000 and 500,000 euros, do not feel that their bank is concerned about advising them on what is best for them.<\/p>\n<p><strong>Our philosophy is to give you a differential treatment<\/strong>, So that you can really understand why we are advising you to do so. After all, it is your money, and you need to understand every step you are going to take to get it back. Are you ready to <a href=\"https:\/\/pibgroupiberia.com\/en\/contact\/\">contact us<\/a>?<\/p>\n<p><a class=\"popmake-26194\" href=\"#\"><img decoding=\"async\" class=\"aligncenter wp-image-31045 size-full\" src=\"https:\/\/pibgroupiberia.com\/wp-content\/uploads\/2016\/05\/BANNER-A.gif\" alt=\"Contact with us\" width=\"500\" height=\"100\" \/><\/a><\/p>\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>Not everywhere they explain how to avoid making a mistake when withdrawing the pension plan, and there is a lot of money at stake.<\/p>","protected":false},"author":14,"featured_media":13158,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[16,152],"tags":[156],"class_list":["post-13150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-particulares","category-profesionales","tag-plan-de-pensiones"],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"_links":{"self":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/13150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/comments?post=13150"}],"version-history":[{"count":0,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/13150\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media\/13158"}],"wp:attachment":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media?parent=13150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/categories?post=13150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/tags?post=13150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}