What you did not know about pension plans


With the years that you have contributed to Social Security, what pension would you be entitled to? And if he wanted to retire earlier, how much would that amount be reduced? With that pension would you have enough to maintain the current standard of living? Would you have enough to eat, travel, dedicate a portion of your income to your grandchildren, who are already starting to grow? Is it worth investing in a pension plan? How does a pension plan work?

How a pension is calculated

How a pension is calculated

The first thing that Juan needs to know in order to calculate the pension that would correspond to him is his work life report and contribution bases, which the Social Security sends once a year to all workers. With this information you can make a calculation of the retirement pension in the Electronic Headquarters of the Social Security. Other entities such as Fundación MAPFRE also offer help programs for this calculation.

If Juan has quoted during the last fifteen years for the maximum base or the minimum base, the program will have incorporated these bases automatically and will provide the regulatory base for the pension, which will be updated. The program will also provide you with the percentage applicable to the regulatory base, based on the legal age of retirement and the justified contribution period. If the result obtained by Juan does not meet your expectations, it is when you should think about supplementing the public pension with a pension plan.

The plans are collecting the contributions of the person, who can do until he retires with full flexibility. Upon retirement, you can charge a supplement to your pension, either in the form of a single payment or as periodic payments. The contracting party can always recover his money if he needs it for certain serious events, such as long-term unemployment. If you die before the collection date, the designated beneficiary would be your beneficiary.

Pension plans must be assigned to a pension fund.

Thus, a pension fund is an independent equity in which the contributions of people who have hired a pension plan, called participants, are accumulated. This means that if the company that is managing a pension fund goes bankrupt, people would have guaranteed the value of their investments.

Pension funds can invest in fixed income (for the conservatives), variable (for those seeking maximum long-term profitability) or mixed (they diversify the investment to achieve a return higher than fixed income in the medium-long term). The pension plans also involve a tax saving: the amount of the contributions is deductible in the tax base of the annual IRPF.

The moment of the decision: what benefits do pension plans have?

The moment of the decision: what benefits do pension plans have?

Juan should bear in mind that his future pension can be reduced for several reasons: the number of years of contributions needed, which, for example, in 2017 will exceed in three and a half years what is required in 2012; the age at which early retirement is accessed, and the sustainability factor, the correction that is applied to the pension according to the life expectancy of the population – more life expectancy, less pension per head.

It is estimated that in 2031 25.5% of the population will be over 65 years old, and in 2066 that percentage will reach 34.4%. Another factor to take into account is the non-revaluation of pensions, which since 2014 do not grow according to the CPI.

The planned pension can be reduced for several reasons, such as the requirement of years of contribution or early retirement age

Is it necessary to contract a pension plan? It is the recurring question of all those who, like Juan, are anxious to find out about their retirement. Although pension plans can not ensure a certain profitability by law when due, they do have a series of advantages, such as being a very flexible savings instrument, because you can make the contributions you want and when you want, just with the existing legal limitations.

Pension plans are a savings instrument for cases of retirement, death, long-term unemployment or serious illness. The money that is contributed to the plan is invested in different markets. For the most risky investors, there are plans based on variable income, which give a medium-long term return to a somewhat higher risk. For the more conservative, there are other specific plans, such as those that invest only in fixed income.

It is estimated that the ideal age to start investing in these plans is 34.4 years, although most start doing it eight to ten years later. Another of the guaranteed benefits of pension plans are the tax deductions they have. With the plans it is the same as with the rest of the contributions made in the different social security systems, which can be deducted from the IRPF with absolute limits and depending on the volume of work and / or economic activities. The limit of the contributions is € 8,000, while the reduction limit is 30% of the returns.


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The rectors criticize the draft of the Law of Universities of Cifuentes

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Madrid, May 31 (EFE) .- The rectors of the six public universities in Madrid have issued a critical report with the preliminary draft of the Madrid Higher Education Area Law of Higher Education (LEMES), which presents “gaps and insufficiencies” and requires “substantial changes”.

After describing as a “positive initiative” a law that addresses higher education in Madrid, currently non-existent but already have other CCAA, the rectors shelling “in a constructive spirit” in a document of 38 pages the proposals for inclusions and modifications that they consider “necessary” “

University autonomy and funding; the definition of universal public service; the requirements to open new universities; the provision of a scholarship system and affordable tuition fees are some of the points of contention, and the rectors ask to “allocate the necessary time and effort” to reach a consensus on a law “with a vocation for stability over time”.

In the draft “is not clearly defined” what is public university service or the concept of “universal service, that is, minimum services with quality regulated”, which should offer a university in its three missions: teaching, research and innovation and knowledge transfer.

This definition, they point out, would avoid “the risk of considering as such a model of ‘academia’ or ‘college’, lacking in research and innovation and transfer.

In addition, they consider that the Community “can not simultaneously exercise the roles of regulator and provider of the same service, contrary to what the preamble of the preliminary draft states.”

As in Madrid come together “service providers” that are public, private and even come from outside the region, the regulation of the Madrid Higher Education Area (EMES) is “a necessity”, but believe that the draft is proposed “more as regulation of public universities that of the public university service “.

Thus, research is hardly included “as a requirement when the provider is private or from abroad” of the region, nor is innovation, transfer and offer of doctorate as components of the university service, since the text does leaves “in a simple level of promise”, without clarifying what will happen if there are breaches.

To create a new university, it would be worth to offer a minimum of ten bachelor’s and master’s degrees, a number “clearly insufficient” and neither the number of branches or areas of knowledge nor the functions of the Employability Advisory Board are clarified.

The accreditations of the qualifications by prestigious foreign quality agencies “do not end in a binding recognition” by the Community, which would have to be “reaccredited” by an autonomous body, they criticize.

The text attributes to the Social Council competences “of control over autonomous organisms of the Administration, whose nature has nothing to do with that of public universities”, reopening the debate on “the balance in which university autonomy prevails in each reorganization of the sector” public”.

Therefore, the members of the Conference of Rectors of Madrid universities (Cruma) recommend “leaving out of the LEMES any amendment relating to Social Councils.”

They also ask to “make it clear” that the financing charged to the regional budgets is “only for the public universities of Madrid”.

In “basic or operational financing”, it is necessary to define which concepts it includes and ask to start with “an initial minimum amount equal to that existing before the crisis cuts” and also contemplate a specific chapter for investments.

The improvements made by variable financing should be “incorporated into its basic or operational financing, as a result of the structural changes produced” by these.

In financing by program contracts, “there are aspects that should be included as basic or operational financing”. Also, in “financing by incentives”, some criteria should go to financing by program contracts.

They ask to include in basic financing the development of the professional career for teaching and research staff (PDI), administration and services (PAS), and financing of new infrastructures through investments.

In addition, it is necessary to specify “the obligation of the Community to maintain its funding commitments through multi-year agreements” that give stability and confidence to public universities, because the text “leaves a door open to the Community to breach these commitments.”


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Regarding the “high performance groups and centers”, their organic dependence on the universities is not sufficiently established, and they consider a “contradiction” to have autonomy of operation and management -with their own staff- within the framework of the university statute and the LOU and the Law of Science.

It is also “necessary” to clarify their budgetary allocations and the transformation procedures of the groups and centers to be of “high performance”.

They ask to clarify the new figures as “visiting professor doctor” with their accreditation and objectives, budget allocation and call procedure, which corresponds “only to public universities by Organic Law”, while the draft speaks of “regional calls”.

The draft does not include “the provision of a scholarship system for students, nor the establishment of affordable public rates and prices for access and the continuation of higher education at its different levels.”

In terms of student mobility, they ask to include “possible formulas for recognition of credits between degrees” from different universities.

“We consider it necessary to carry out the aforementioned modifications”, for which “we offer our collaboration to the CM to incorporate and specify in the articles the points mentioned above,” the rectors added.

In his opinion, “all the time that is now used to improve and agree” the text will minimize “the possible errors – difficult to correct later – that could be the result of a precipitation in the deadlines.”

This is the first time that a Law of Madrid universities has been proposed and “much is at stake”, in order to provide the region with a “quality public university service, with an internationally recognizable and recognized brand, which serves as a center of attraction and conservation of talent in the mobility of any university system “, concludes the communiqué of the Cruma.

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Salary matching of firefighters and health, pensions and Bullfighting Museum will center the plenary session of Provincial Council

The salary comparison of the firefighters of the Provincial Consortium

dependent on the Diputación de Málaga, and of the Andalusian health personnel with the Spanish average; the situation of the public pension system and private plans; the use of the building of the Bullfighting Museum as the permanent seat of a flavor market in Malaga and the cutting of the subsidy to the Food Bank (Bancosol) are some of the issues that will be debated in the plenary session of the provincial institution in April, which is celebrated this Friday.

These are some of the issues that have presented the political parties present in the Diputación in urgent motions. Thus, the socialist group has lamented that in the same Provincial Fire Brigade (CPB) there are “firefighters first and second”, according to his spokesman, Francisco Rabbit, who has criticized that despite doing the same job do not charge the same salary .

“It is a situation of manifest injustice, it is neither incomprehensible nor understandable,” he said, pointing out that this “discrimination” is due to the fact that some professionals depended on the Provincial Council itself, “guided by its agreement”, and others are part of its own CPB. Thus, although “the idea was to equalize wages, this has been paralyzed and some charge 500 euros net monthly less than others for the same work”.

This “discrimination” leads, according to the general secretary of the Andalusian Fire Department in Malaga, Lorenzo López, to have to “look for life in other professions.” “We have no choice but to have a salary and we ask that they be equated and that we be the same as other firefighters at the regional level because the conditions of the Malaga Consortium are practically the worst in all of Spain and it is not fair,” he said, recalling that they are workers who must be “one hundred percent to give the best service to the citizen”.

At this point, Rabbit has waited for the support of the other political forces of the institution

At this point, Rabbit has waited for the support of the other political forces of the institution

especially Citizens, “who carry by flag the equalization of the Civil Guard and the National Police” with other autonomous security bodies. “If we care about them we must also do it with the firefighters, who depend on the Provincial Council, I want them to have the same responsibility.”

The Socialist asked the PP what is wrong with the firemen, recalling the labor dispute in the City of Malaga “that has been going on for more than a year and is a huge irresponsibility.”

The PP also takes a motion to the plenary session, in this case, to claim the wage comparison of Andalusian health professionals with those of the rest of Spain. The popular deputy spokesman, Francisco Oblaré, has considered “necessary to dignify the salaries” of these workers, so they will urge the Board to review the variable supplements of all health professionals, so that by the end of the year ” there is a full convergence with the national average “; to reactivate the career process “paralyzed in 2014” and to review the remuneration concepts and variables.

The urgent PP is about the “cut” in the subsidy to Bancosol

which has stopped receiving 675,000 euros, of the 850,000 euros that it had, since the money is provided by the Junta de Andalucía, according to Oblaré. “Before the money came from the cross that citizens put in the income statement but that competition has been transferred to the autonomous communities and this organization, which has been the support of many families during the crisis, now receives 80 percent less, 175,000 euros “, has criticized, stressing that they will demand the Andalusian Government to restore aid to this NGO.

IU-For the People and Málaga Now they present to the plenary a joint urgent motion, at the request of the Pensioners in Action platform, so that the Provincial Council urges the Government to reject the proposal of the European Commission to create a pan-European product of individual pensions. For the spokesperson of this group, Pilar Mendoza, Europe “presents the scam of the card,” with “large bonuses to private pension plans.”

“In the end we will have to pay what corresponds to Social Security plus private pensions and that is a scam in full rule, public pensions will go less, we will have fewer benefits and it is from drawer that fewer services will be given,” he lamented Mendoza

Citizens, on the other hand, takes as an urgent motion that the building of the Tauromaquia Art Center, “squatted by Juan Barco”, be recovered and destined to a permanent market of Sabor a Málaga, which “will result in the producers they are mostly in the interior of the province. ” In addition, “you would save the 400,000 euros that a Fair Flavor to Malaga costs where 90 producers expose four days, so that there would be 230 producers and throughout the year”.

For his spokesman, Gonzalo Sichar, the company that took over the management of the market “would have to improve the sales channel of the website” since, currently, “only 23 producers are selling, ten percent.”

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