Savings and Pension funds

Savings and Pension funds

When you start a saving plan, there is always a goal that is at its source. Find the right insurance your savings.

Savings or to save money referes to not spending today to spend later. Either way, money was made to spend, today or in 20 years.

The ideal is to start making monthly deliveries, a value subtracted from your account without making a gap, if possible monthly. It should not be too low for you to save a value that is important to you, but also a value that is not too high that becomes uncomfortable.

 

What are the alternatives?

 

  • Demand deposits: Indicated to have a small amount that guarantees monthly liquidity. They are usually not remunerated, or do not receive an interest for them, or else it is a fee and the interest is very low;
  • Time deposits: Indicated for short or medium term savings, since the rates they guarantee are not very high;
  • Savings and Pension funds: Indicated for those who think about the long term. In addition to good profitability, the safety of an insurance company can be added to this. The objective of the person who adheres to this can be his retirement, being advantageous since it is in the long term.
  • Life Insurance: Savings included in an Insurance Company. It has interesting rates and it is a good long-term alternative;
  • Shares, bonds and other financial applications: Financial instruments that require more attention, or even a professional manager, for not becoming bad saving options.

 

In the short to medium term, you should privilege time and current accounts, but if you want to save  for 5 years or more, a life insurance or saving fund will be more advantageous (the profitability, taxation and security are higher).

 

What is the long-term advantage of saving in this contract?

  • First, the interest rates that are generally obtained are higher than those obtained with other saving instruments.

Also the taxes on capital gains that the state charges (being withheld by banks or insurance companies) whenever interest is paid, it is much lower than in a demand deposit, term, shares or life insurance.

On the other hand, these taxes are only withdrawn at the end at the time of redemption and not annually, with the advantage of generating interest on interest (compound interest).

The situations provided in the law for PPR redemptions are:

– Provided that at least 5 years have elapsed since the date of the first delivery, if the amount of deliveries made in the first half of that period is> 35% of the total deliveries and provided that the person is over 60 years old.

– Complicated situations such as long-term unemployment, serious illness, death of the insured person.

 

The website of the Insurance and Pension Funds Authority (ex-ISP) has a tool that you can consult and that compares the existing PPR in Portugal in terms of attributed profitability, charges that are charged and companies. The analysis is complex.

Talk to us, we can advise you. On the contact page choose Rosa or Rui, specialists in this subject.

Do you already have a PPR but are not satisfied. What to do?

If you already have a PPR and you are not satisfied with the Institution,  the charges that are being applied to you can be transfered to another PPR that you would like, with reduced costs 0.5% if it is a PPR with guaranteed profitability or without penalty if it has no guaranteed profitability.

Talk to us, we can analyze your current PPR and see if there is any better alternative on the market to better monetize your savings.

 

Insurance Companies are

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