How plan commissions work

How plan commissions work

The pension plans They’re a way of saving for retirement to complement the pension that we will receive from the State and also, they do not allow us to pay less taxes while we work.

The problem is that these plans entail expenses in the form of commissions that cost money that perro be eaten much of the benefits. That is why before contracting a plan, we must not only look at its composition and historical profitability, but also at the commissions it charges.

What are the commissions of the pension plans?

The pension plan fees they are the price we pay for being part of a plan. The two main ones are that of management and of deposit and they are associated with the services provided by both the managing entity, which is the one that manages the money, and the depositary entity, which is the one that keeps it.

The commissions of a pension plan are charged whether the profitability of the product is positive or negative. Are limited by law. Section 17 of Royal Decree 62/2018 is in charge of regulating them.

It is important to clarify that commissions are calculated on equity managed and not on the profit generatedso that, although the percentage is always the same and is limited by law, the cost of maintaining the plan will increase as we have more money invested.

Some pension plan commissions

Let’s take a good look at what each commission that pension plans have consists of, how they work and to what extent they affect our benefits.

Management Commission

This commission is intended for the managing entity that manages and controls us, in accordance with the law, the money that makes up the pension fund. she is who plan the strategy of the plan and regularly inform the participants of its evolution. This service entitles you to receive a maximum compensation up to 1.50% on the assets managed.

The maximum percentage that the management entity may charge will depend on the degree of exposure to variable income that the fund has:

• Fixed income pension plans: 0.85% per year.

• Mixed fixed-income pension plans: 1.30% per year.

• Variable income and guaranteed pension plans: 1.50% per year.

deposit fee

The deposit commission is perceived by the depository entitythat is, the person in charge of guard and monitor the invested assets. It is also the one who makes the collections and payments, as well as the purchase and sale of securities. By law, you may charge a maximum commission of 0.20% about heritage.

What is the best plan pensions according to commissions?

The pension plans They are very habitual among the Spanish. That is why the government has announced profound changes for 2022 in order to strengthen employment pension plans, promoted by companies and public administrations for their workers. Against this background, experts recommend plan savings taking into account circumstances and lPotential profits and commissions.

There are currently a multitude of options on the market to choose from, something like 183. Fortunately, not all of them charge high commissions; exist a few products on the market whose management commission is between 0.30% and 0.75%.

MyInvestorAndbank’s neobank, has in its catalog the two indexed pension plans with lower commissions of the market by applying a management fee of 0.30%. Is about Myinvestor Global Index and Myinvestor Indexed S&P 500 both have generated a return of more than 23%.

plans Index Capital, Finizens and best me They are also among the cheapest on the market. He Index More Return Stocks charges a management fee of 0.39%, and has achieved a profit of 14.73% per year in the last three years. follows him daring finizenswhich applies a commission of 0.40% and has achieved an average return of 7.48% per year in the last five years.

It is also worth highlighting the pension plans promoted by insurers such as psnfintech companies such as finletic and fintupfinancial advisory companies such as Casadevall and even rural banks such as Caixa Guissona that charge a management fee of 0.70% and are still one of the cheapest on the market.

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