How to adapt the pension plan deprives your life.

 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 .