Understand how this investment works and learn what
you can do to make it adapt to your needs.
We seek to live longer and better. With treatments
and health care developing, thinking about long-term plans to ensure financial
peace of mind for longer, ends up making total sense.
Here at John Labunski we understand that this
longevity can lead to changes in the way you save. With that in mind, we've
separated some ideas on how your pension plan can be an important ally and
adapt throughout life.
Pensions: a
long-term savings
As a starting point, it is important to keep in
mind that the supplementary pension plan should be considered as a long-term
plan. This is because some amounts that affect the plan make it beneficial only
after 12 years of continuous contribution.
Therefore, the amount deposited as part of this
retirement plan must remain in the portfolio for an extended period until it is
worth redeeming.
Taxation
model: Progressive or regressive
Another important detail that needs to be analyzed
according to the expected contribution time is the taxation model. Pension
plans usually have a progressive and regressive model that have different
advantages between them.
The option for the regressive table is indicated
when the savings project is defined for the long term, since the amount of tax
levied on contributions falls as the years go by. In this case, it is highly
recommended that the contributions are made for at least ten years, and then
the redemption can be carried out.
The progressive model , on the other hand , is
indicated when the perspective of the contribution period is shorter. But it is
worth mentioning that, if those who opt for the progressive model change plans
and wish to migrate to the regressive model, it is possible. But once in the
regressive model it is not possible to switch to the progressive one. Two
points are important: the reservation that was left from one plan to another
will not be computed and tax rules will apply during migration.
Portability:
The possibility of change before the end
Despite the need to think of private pension as a
long-term plan, in the middle of the process it is still possible to carry out
portability. A way to adapt the plan to your new reality of life.
Through this mechanism, it is possible to move your
resources to another plan or investment fund from the same insurer or even to
another plan from another insurer, which is better suited to what you need.
This procedure can be carried out as many times as
you want, and has few limitations, such as respect for the grace period for the
transfer and the impossibility of changing the PGBL (a plan in which the income
tax deduction applies only to the total value of the redemption) to the VGBL
(in which the tax is levied only on the profitability accrued during the
investment period).
Emergencies
and the best thing to do
It is always worth remembering that, in the event
of an emergency, the accumulated contribution amount can be redeemed at any
time - despite losses with fees.
John Labunski works with a team focused on
finding solutions for your private pension profile, whether it’s designed for you
or your company .
