{"id":14803,"date":"2018-01-23T13:00:22","date_gmt":"2018-01-23T12:00:22","guid":{"rendered":"https:\/\/pibgroupiberia.com\/?p=5223"},"modified":"2025-06-02T13:35:42","modified_gmt":"2025-06-02T11:35:42","slug":"the-3-reasons-to-save-today","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/blog\/los-3-motivos-para-ahorrar-desde-hoy\/","title":{"rendered":"The 3 reasons to save today"},"content":{"rendered":"<p>The <em>\u201cliving up to date\u201d.\u201d<\/em> is something very \u201c<em>Spanish<\/em>\u201d. We are used to seeing that those who retire receive<strong> pensions similar to what they received while they were working<\/strong>. Today we will look at the causes that should lead us to save, always within our means.<\/p>\n<h2>Do you really believe that current pensions are sustainable?<\/h2>\n<p>Here are some data that reflect the <strong>Spain's difficulty in paying its pensions in comparison with other countries<\/strong> at world level. These statistics compare Spain with the OECD (an organisation of 35 countries, most of them better placed than Spain), and the source of these data is <em><strong>Pensions at a glance 2017<\/strong><\/em>:<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-5225\" src=\"https:\/\/pibgroupiberia.com\/wp-content\/uploads\/2018\/01\/pensiones-jubilacion.jpg\" alt=\"pension system\" width=\"904\" height=\"340\" \/><\/p>\n<p>These data reflect that:<\/p>\n<ul>\n<li>Spain spends an average of 3% of GDP (in the picture \u00abGDP\u00bb) more on pensions than it does on average.<\/li>\n<li>Incomes in Spain are below average (where it says \u00abearnings\u00bb).<\/li>\n<li>Life expectancy in Spain is two years above the average (higher pension costs).<\/li>\n<li>The over-65s in Spain have more weight than the OECD average (more pension costs to bear).<\/li>\n<\/ul>\n<p>If we add to all these data these two:<\/p>\n<ol>\n<li><strong>The pension fund is running out of money<\/strong>, The world's largest and fastest-growing economy, consuming itself at a rate that in two years' time will be gone.<\/li>\n<li>Very important: <strong>the replacement rate in Spain is around 80%, while in the European Union it is 60%.<\/strong>. This compares the last salary against what we received with our first pension. Maybe now we understand why in Spain we spend 3'2% more of GDP on pensions... because we have a replacement rate that is too high to be able to pay for it.<\/li>\n<\/ol>\n<p>It is clear that this kind of data is behind the talk of not being able to pay pensions.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-5226\" src=\"\/wp-content\/uploads\/2018\/01\/plan-de-ahorro.jpeg\" alt=\"Savings plan \" width=\"950\" height=\"632\" \/><\/p>\n<h2>The sooner you save, the more your money will increase exponentially.<\/h2>\n<p>This, which seems to make no sense, is called the<em><strong> \u00abeffect <\/strong><strong>snowball\u201d.\u201d<\/strong><\/em>.<\/p>\n<p>Let's say that, from your monthly savings of 200 euros, you dedicate 50 euros to your retirement, which means that in 1 year you have 600 euros for that purpose.<br \/>\nThose 600 euros generate a return in one year, let's say 25 euros. That \u20ac25 the following year will continue to yield a return, accumulating to the \u20ac600 you have already put in plus the \u20ac600 of that year...<\/p>\n<p>A \u201c<strong><em>compound interest\u201d.\u201d<\/em><\/strong> This will mean that you will get a much better return 30 years down the line than if you start saving at 57, when you only have 10 years to go before you retire.<\/p>\n<h2>The money in your current account is an annual financial loss.<\/h2>\n<p>As we have pointed out on several occasions, although it may seem strange:<\/p>\n<blockquote><p>if I save but leave the money in my current account, I will be<strong> losing<\/strong> <a href=\"\/en\/blog\/how-to-calculate-the-money-we-need-to-save\/\">purchasing power<\/a> <strong>as long as there is inflation<\/strong>,I don't get a return on that money and everything goes up in price in the meantime.<\/p><\/blockquote>\n<p>Most years; there is inflation (in 2017: somewhat above 1%).<\/p>\n<p>So if I left 1,000 euros a year in my account, I would lose 10 euros a year, assuming an average of 1% inflation (although in reality, many commodities rise above that figure). By contrast, by putting them into a savings product, I could get 30 euros a year, or even more. That is, a difference of 40 euros per year, according to the data in the example.<\/p>\n<p>Be careful! We are not saying all this... this is something the Spanish already know. Thanks to the <em>5th Survey on Retirement and Saving Habits<\/em> conducted by BBVA, we know that:<\/p>\n<ul>\n<li><strong>81% of respondents would recommend saving for retirement<\/strong> (and which they justify by the worrying state of Social Security).<\/li>\n<li>but <strong>only 27% of them do.<\/strong><\/li>\n<\/ul>\n<p>If you think it's time to do so, or that you should at least start looking at a savings product that will give you a good return, contact us and we'll help you find the right product for you. <strong>you will be able to compare more than ten financial institutions in one place<\/strong>, to make your search much easier. Find the best one now <a href=\"\/en\/individuals\/insurance-solutions-for-individuals\/savings-insurance\/\">PIAS savings plan<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Saving will allow us to maintain a standard of living for many years to come.<\/p>","protected":false},"author":14,"featured_media":14804,"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],"tags":[190],"class_list":["post-14803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-particulares","tag-pias"],"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\/14803","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=14803"}],"version-history":[{"count":0,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/14803\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media\/14804"}],"wp:attachment":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media?parent=14803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/categories?post=14803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/tags?post=14803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}