New savings formulas: nearly 40% of Spanish workers will be ready to allocate part of their salary to a pension scheme
The last few months have generated a significant change in the needs of workers. Economic uncertainty and the ups and downs of the pandemic have prompted many to consider the possibility of looking for new ways to save. Added to this is the reform of the regulation of the Personal Income Tax (IRPF), which is adapted to the fiscal measures announced in the General State Budgets (December 30, 2021 in the Law on the Regulation of Plans and of the Pension Funds). In this, it is envisaged to modify the deductions of contributions to pension schemes, both individual and company.
With the new model proposed, the annual contribution to individual pension plans cannot exceed 2,000 euros, which represents a substantial reduction (6,000 euros) from the annual amount currently planned, in favor of work plans, which drops from 8,000 to 10,000 euros. . This is a drastic reduction with which it is intended to encourage and promote employment plans so, from now on, those who want to get the most out of a retirement plan must do so through their company.
Regulatory changes have helped generate this feeling of insecurity among workers and business leaders, as they leave a lot of doubts in the air about the public contribution to our future economy. In this context, the pension plans that companies offer their employees are becoming more important than ever.
According to the report “Trends in Social Benefits 2021” prepared by Cobee, a specialist in provident plans, 63% of those questioned admit to being interested in retirement plans among the advantages offered by their company, half of them declaring to have seen Increased interest in this type of remuneration in recent months. Given the new situation, this type of compensation offered by companies is proposed as the best solution for those who wish to make the most of their retirement plan, with an appeal that lies in the simplicity and transparency with which they are. managed. Thus, 31% of employees will be ready to invest an average of 212 euros of their salary in the “retirement plan” benefit, taking into account the fact that, moreover, the company will double this amount.
Thus, the latest developments in the sector suggest a trend towards semi-compulsory business plans, the model of which is similar to that of the tax in the United Kingdom. There, since 2012, “automatic enrollment” has been applied as a measure to guarantee retirement income. Specifically, it is a corporate social security system whereby UK employers are required to automatically enroll their employees, who meet certain minimum conditions (over 22 and with a salary over £ 10,000 ), to a pension plan or instrument. One of the main advantages is that it is mandatory for companies, but optional for employees. In Spain, organizations such as Inverco, the Association of Collective Investment Institutions and Pension Funds, have already supported this model.
“Regulatory changes and the uncertainty generated by the current economic and social crisis are causing more and more employees to reflect on their long-term financial well-being. Businesses need to pay attention to the changing needs of their employees and give them the flexibility to choose what their benefit plans focus on, so they can feel the security and support they now need ” , says Borja Aranguren, CEO and Co-Founder of Cobee.