{"id":15582,"date":"2016-06-10T13:00:48","date_gmt":"2016-06-10T11:00:48","guid":{"rendered":"https:\/\/pibgroupiberia.com\/?p=3039"},"modified":"2025-07-21T12:10:45","modified_gmt":"2025-07-21T10:10:45","slug":"how-not-to-make-a-mistake-when-choosing-a-pension-plan","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/como-no-equivocarnos-al-elegir-el-plan-de-pensiones\/","title":{"rendered":"How not to make a mistake when choosing a pension plan"},"content":{"rendered":"<p>As we mentioned in a previous entry,\u00a0<a href=\"https:\/\/pibgroupiberia.com\/en\/blog\/the-uninformed-lie-of-pensions-and-social-security\/\">supplementing our public retirement pension<\/a>\u00a0is going to be essential if we want to maintain our standard of living, especially for those under 50.<\/p>\n<p>For this reason, today we would like to explain <strong>what are the main mistakes we make when subscribing to a pension plan and what criteria to follow when taking out a pension plan?<\/strong>. This will determine whether we have more or less money in the plan when we retire.<\/p>\n<h2>Why don't we compare our pension plan?<\/h2>\n<p>Recently, we were fortunate enough to attend a very interesting presentation on savings and pension plans, which highlighted the following: <strong>the average Spaniard does not compare his pension plan and relies solely on what his bank manager tells him.<\/strong>.<\/p>\n<p>The <em>\u201cmodus operandi\u201d<\/em> The next time we visit the bank, we are offered a pension plan, which is the savings product that allows us to deduct tax and, without even knowing the type of plan we are entering into (it could be a fixed income, mixed or even variable income plan; in other words, we could lose money), we agree because it allows us to save money on taxes for the next year.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-4659\" src=\"\/wp-content\/uploads\/2016\/06\/tipos-plan-pensiones.png\" alt=\"Choosing a pension plan\" width=\"950\" height=\"506\" \/><\/p>\n<h2>The big mistake: looking only at the volume of a plan<\/h2>\n<p>In general, it could be said that the pension plans with the highest number of investors do not have the best returns. Here is the data to back this up (mid-2016 data):<\/p>\n<ul>\n<li><strong>Spain's No. 1 pension plan by number of members<\/strong>My Santander Prudent Plan (more than 220,000 at the end of 2015). It has the maximum fees allowed (1.5% per annum for management and 0.25% for depository fees), and <strong>its <\/strong>Inverco's ranking places it at no. 193 out of 220 plans in its category (mixed fixed income). In addition, this year 2016 it is losing nearly 3% until April.<\/li>\n<li><strong>Spain's No. 1 pension plan by number of equity members: <\/strong>BS Plan Renta Variable, from Banco Sabadell (over 50,000 participants in Spain). Something similar happens to Santander's: Inverco places it among the worst, specifically among the 10% with the worst profitability in its category. Its profitability is negative both at 10 and 15 years.<\/li>\n<li><strong>No. 1 pension plan in Spain by volume of money under management: <\/strong>La Caixa's PlanCaixa Equilibrio (around \u20ac3.2 billion), which has had a return over the last 10 years of less than 1% per annum (0.89%), i.e. well below the average for the plans. Worst of all, it is negative over the last 15 years.<\/li>\n<\/ul>\n<p>And these are just a few examples...<\/p>\n<h2>Our advice to improve our choice of pension plan<\/h2>\n<p>If the pension plans with the worst results are the ones with the most accumulated money and the largest number of members, it means that the people who have invested there have not looked at the returns obtained, nor have they looked at the returns obtained.<strong> compared<\/strong> with other options that are more favourable to their interests.<\/p>\n<p>We therefore reiterate the need for a <strong>correct and appropriate advice<\/strong>, We will be able to make sure that we do not make the wrong choice. At the same time, they can advise us when it is convenient to change to a better plan.<\/p>\n<p>There are 10 million people in Spain who save or invest in a pension plan, the majority of whom should get information or advice, and <strong>compare pension plans from different institutions<\/strong>, taking into consideration<\/p>\n<ol>\n<li><strong>The risk I want to take is the first thing we need to know:<\/strong> No one should advise us to invest our money in equities (neither the person at the bank, nor a friend, nor my manager). The reason is very simple: we should know the risks we are taking by doing so, and be able to opt for another more conservative plan if we do not want to take the risk.<\/li>\n<li>Once we have option one: <strong>compare plans from different entities<\/strong>; y <strong>what to look out for?<\/strong><br \/>\n<strong>- The historical profitability of this plan<\/strong>, especially when compared to the <em>\u201cbenchmark\u201d<\/em> (the average performance of pension schemes in its category)<br \/>\n<strong>- Pension plan expenses:<\/strong> <em>while important, they are not fundamental<\/em>, We all understand that if we want the best manager deciding the investments of my money, we understand that he will charge more than a \u201cmediocre\u201d one. As long as he is well positioned in the benchmark.<\/li>\n<\/ol>\n<p>If you need help with your pension plan, both in choosing the right one for you and in finding out the tax implications, <strong>our Savings and Investment Department<\/strong> will help you. Give us a call or check out our options for saving and\u00a0<a href=\"https:\/\/pibgroupiberia.com\/en\/individuals\/insurance-solutions-for-individuals\/savings-insurance\/\">improve your pension<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Because we don't want you to choose the first pension plan that comes your way, but to be clear about why THAT plan is right for you, we explain the main mistakes and how to fix them.<\/p>","protected":false},"author":14,"featured_media":15583,"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":[156],"class_list":["post-15582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-particulares","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\/15582","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=15582"}],"version-history":[{"count":0,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/15582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media\/15583"}],"wp:attachment":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media?parent=15582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/categories?post=15582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/tags?post=15582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}