At any time, having a pension plan on hand is one of the smartest decisions a person can make to ensure their financial well-being in the future. However, taking out a pension plan before the end of the year has additional benefits that make it an even more attractive option.
The holiday season is a key time for any investor. Firstly, because many begin to organise their finances for the future, especially with an eye on next year’s goals. Secondly, in markets such as Spain, there are tax advantages that make taking out a pension plan an even more strategic decision.
These benefits, which are often only available until December 31, can provide significant tax savings, which not only increases investment returns but also allows you to maximize your retirement savings.
Advantages of taking out a pension plan before the end of the year
Contracting a pension plan before the end of the year is a strategic decision to ensure long-term economic stability. In a context in which concerns about retirement are becoming more and more frequent, having solid financial support becomes essential to calmly face the stage in which one stops working.
Retirement does not eliminate regular expenses; on the contrary, in many cases, they may increase. Costs such as medical care or home maintenance often increase over time. Although the magnitude of these expenses varies according to personal circumstances, what is constant is the need for adequate financial planning to maintain a comfortable and well-off lifestyle, supported by an income sufficient to cover them.
Signing up for a pension plan before the end of the year is especially relevant. This time of year is when many people choose to set financial goals and make important decisions to ensure their long-term financial peace of mind.
5 reasons to take out a pension plan before the end of the year
Take advantage of compound interest from an early stage to maximize profits
Compound interest is key to investment growth. It refers to the ability to generate returns not only on the initial capital, but also on the interest accumulated over time. The sooner you start making contributions to your pension plan, the more time you will have to maximize your savings.
Taking out a pension plan before the end of the year allows you to take advantage of this benefit from the start, as compound interest starts to operate from the earliest stages of the investment. This “snowball” effect accelerates the increase in capital available for retirement, multiplying returns exponentially over time.
Allocate part of your savings in advance before Christmas expenses
December is one of the times of the year with the highest increase in personal spending, due to Christmas celebrations, which include gifts, family dinners and social events. Taking out a pension plan before these dates allows you to plan ahead, setting aside a portion of your savings to secure your future.
This way, you protect your long-term financial goals while enjoying the holidays without compromising your financial planning.
Start early to ensure long-term returns
When it comes to long-term investments, time is the best ally for generating good returns. By taking out a pension plan before the end of the year, you guarantee that your savings will start generating returns from day one.
Over time, these returns will accumulate, allowing you to build a solid pension fund. This fund will provide you with a more complete retirement, tailored to your lifestyle and financial needs.
Financial planning and discipline for a stable future
Signing up for a pension plan may be the necessary step to start organizing your finances. This commitment encourages financial discipline, since it involves allocating a fixed amount of your income each month.
Even if you decide at some point to stop contributing to the pension plan, keeping it active continues to generate returns thanks to compound interest and the diversification of the fund.
Establishing this habit not only ensures your long-term financial stability, but also motivates you to maintain constant planning that guarantees the fulfillment of your financial goals.
Protecting and diversifying savings in the face of economic uncertainty
Taking out a pension plan before the end of the year helps investors protect and diversify their money across a variety of assets, offering greater stability in the face of economic volatility.
In addition, many pension plans allow you to choose between different investment options, giving you the opportunity to adjust your strategy according to your risk tolerance and goals. This not only protects your savings against potential market fluctuations, but also optimizes long-term growth opportunities.
Why choose inbestMe to manage your pension plan?
If you are considering taking out a pension plan before the end of the year, it is essential to opt for a management that combines experience, trust and a clear focus on long-term growth. In this sense, inbestMe stands out as a leading solution in pension plan management.
This platform offers a wide variety of investment options, designed to fit the needs and goals of each client. In addition, it has a team of experts who accompany users at every step, helping them to optimize the performance of their savings.
Features of the inbestMe pension plan
- Diversification and active management: It is based on a diversified investment strategy, using portfolios that combine index funds, SRI funds (socially responsible investment) and ETFs (exchange-traded funds). This allows users to access a wide range of assets to minimise risks and maximise returns.
- Personalization and advice: inbestMe’s pension plans are designed to fit the objectives and risk profile of each client, with the possibility of having the support of a team of investment experts to optimise returns.
- Tax optimisation: This pension plan offers a smart approach to tax optimisation, allowing investors to maximise their profits through tax-efficient strategies. In addition, if you already have a pension plan, inbestMe facilitates the transfer of the pension plan from another entity, ensuring a quick transition without additional costs to maximise your profits.
- Profitability: We have 3 pension plans that make up the inbestMe Pension Plan portfolio. On the one hand, there is the fixed-income pension plan, which has a risk level of 4/7 and its main objective is to obtain long-term profitability by investing in fixed-income Collective Investment Institutions (IICs) with global exposure. On the other hand, there is the variable-income pension plan (Standard and ISR), which offers a risk level of 6/7 and is designed for investors with a more determined profile, who seek high long-term profitability through low-cost ETFs.
- Low management fees: From 0.60%, the platform does not charge direct fees for managing the pension plans. These associated costs are included within the plans themselves, which means that, instead of a direct charge, the costs are implicitly reflected in the investment performance.
Don’t let 2024 end without taking out a pension plan before the end of the year. Project your economic stability with a tool that allows you to build a solid backup for your retirement. Do it with inbestMe!
