Pension Schemes in Tenerife

It is a short-term fixed-income pension scheme, especially suitable for people close to retirement age or who are looking for a type of investment that minimizes risk, the main objective of which is to preserve accumulated capital. This low level of risk is achieved with an investment of 100% of the assets in fixed income assets

An option designed for those who seek to complement the income of their pension, minimizing the risk of their investment. It is a medium and long term fixed income pension plan with investments based on security, liquidity, diversification and profitability criteria.

This pension plan is designed for people who want to maximize the return on their investment in the medium term and, in turn, are open to assuming a moderate level of risk. The investment of the patrimony will be carried out mainly in fixed income and will have a percentage of up to 30% in variable income.

An ideal pension scheme for those who wish to combine the security of their investment with the expectations of return on equities. It is specially designed for long-term savings or for people with a distant retirement horizon. This pension plan invests between 30% and 70% of its assets in variable income assets, trying to collect those that have the best performance.

This pension scheme is especially desinged for the long term, with the aim of investing in funds that seek maximum performance, assuming for this a greater risk in the face of market fluctuations. It is an international variable income pension schemen in which at least 75% of the assets will be invested in variable income and shares

At the time of retirement in the corresponding Social Security system, whether at ordinary age, early retirement or later.

Whether it is for the usual profession, as permanent and absolute for all types of work and great disability. All the cases foreseen according to the pertinent Social Security regime.

In the event of a situation of severe dependency or great dependency of the participant of the pension scheme, attending to the assumptions contemplated by the current legislation.

In the event of the demise of the insured person or that of the beneficiary of the pension scheme, the beneficiaries will be able to access it.

In addition to these contemplated cases, there are exceptions to the enforcement of the rights established in the scheme, such as situations of long-term unemployment or serious illness according to the assumptions contained in current legislation.

The option to collect the amount in advance depending on the contributions made in the last ten years, is also contemplated as of January 1, 2025.

The possible options to access the pension scheme are:

• Capital: consisting of a single payment for the total amount of the rights consolidated in the plan.
• Rent: through periodical payments.
• Mixed: combining a payment in the form of capital and the rest in periodic income.
• Irregular payments, without periodicity.

In addition to these contemplated cases, there are exceptions to the enforcement of the rights established in the scheme, such as situations of long-term unemployment or serious illness according to the assumptions contained in current legislation.
The option to collect the amount in advance depending on the contributions made in the last ten years, is also contemplated as of January 1, 2025.

The possible options to access the pension scheme are:

• Capital: consisting of a single payment for the total amount of the rights consolidated in the plan.
• Rent: through payments made periodically.
• Mixed combining a payment in the form of capital and the rest in periodic income.
• Payments irregular, without periodicity.

Because maintaining a stable economic situation during retirement is one of the main concerns related to savings, since the Social Security public pension system is expected to be insufficient.

Given this, pension plans offer a very adequate solution since they will complete this system with an economic contribution that helps us maintain the desired status. In addition, it has important tax advantages, it is a disciplined saving method and it includes liquidity assumptions for special cases in which the participant may need their savings.

In addition to the contingencies provided for in the pension scheme, in other words, retirement, invalidity, dependency or death, there are two special cases in which you can dispose of your savings in advance. These situations are long-term unemployment or a serious illness included among the assumptions of the current law.

It is flexible regarding contributions, both in terms of the amount and its frequency, which can be freely established or discontinued and resumed at another time.
The amount can be adapted to the purchasing power of the participant and their preferences, provided that the established legal limits are not exceeded.

Yes, and in a simple and free way, since the regulations for these savings systems contemplate the possibility of transferring the plans at any time and immediately.

The contributions you make to the chosen pension plan may be periodic (monthly, quarterly, semi-annually or annually), extraordinary or a combination of both. They can have a constant amount or be revalued annually, with the possibility of suspending them at any time and resuming them if the participant so decides. The annual total for all the contributions made to the pension scheme won't exceed the legally established limits at all times.

In addition to providing you with the savings needed to maintain your standard of living in the future, pension schemes allow you to deduct very important amounts in the PIT settlement, since the contributions made are deducted from the base of this tax, with an established limit of the lesser of the following two amounts: 8.000 euros or 30% of the net income from work or economic activities.

All benefits derived from a pension scheme are included in the PIT settlement as work returns, integrating in its entirety in its general tax base, so the beneficiary will have to declare the amount received in each year for this concept in their tax settlement.