The President of collective investment institution and pension funds (Inverco), Ángel Martínez-Aldama, criticized government because hyposis used by simulator of Social security website to calculate pension that will be charged by Spaniards How much y retire "leads to a monetary illusion" by not taking into account evolution of inflation. "Apart from how complicated it is to access simulator data, using constant euros citizen is not aware of purchasing power that will have ir money," he said.
The government-approved measure to facilitate 10-year bailout of money invested in pension plans increases attractiveness of this product, according to employers of funds, but it is not enough. This association calculates that in 2025, year from which this proposal will be effective, re will be 40 billion euros susceptible to be rescued by participants, although it discards "mass withdrawals".
Martínez-Aldama believes initiative to provide more liquidity to pension plans must be complemented, firstly, by an agreement between different parties within framework of Toledo pact to establish a "sustainable" system and to guarantee Adequate benefits so that pensioners do not lose quality of life. "The public pension system cannot be questioned permanently," he stressed.
In addition, President of Inverco considers it indispensable for government to comply with promise made in 2011 to send a letter every year to workers explaining what will be pension y are going to collect in future. "The first step in promoting savings is to make workers aware of how much y will have. This information is already provided by 10 countries of European Union, "he explained.
Anor initiative that this association considers important is to incentivize pension plans of companies, "eir through compulsory models of contributions or Semicompulsory". At end of 2017, money invested in Spain for retirement amounted to 111,077,000,000 euros, and only 32% of that heritage is channelled through employment system. Martínez-Aldama Set example of United Kingdom, where, through state-sponsored infrastructure, small and medium-sized enterprises can make contributions to ir workers ' plans.
Anor of modifications that Inverco asks government to encourage private savings in face of retirement are tax incentives. "It's a long-time battle-horse. It would be advisable to improve taxation especially in benefits of plans, "said Martínez-Aldama. In this sense, association recalls that tax incentives to savings in pension plans in Spain compared to a savings account "are lowest in OECD and barely reach 9%, compared to 30% of average."
In 2016, last available data, 6,670,000 of participants in pension funds, 68% of total, did not make any contribution to ir plans. The forecast for Inverco is that in 2018 money invested in retirement products is 114 billion, with a growth of 2.6%, thanks mainly to contributions of individual system and revaluation of portfolios.