How to receive a pension plan

www.minus19.com

19-11-2008 | Javier Gomez

To receive the pension plan

So important as it is to be able to choose a good pension plan, it it is at the moment of recovering the money, choosing the way most adapted to receive it and especially, when to do it. And the fact is that now, we, like beneficiaries, have the option to postpone this collection moment with entire freedom until we think that the suitable moment has come.

This option that now we have is an advantage that we acquire from the coming into effect on January 1, 2007 of the current legislation with which there was eliminated the obligation that the participant of the pension plan had of communicating within a period of six months after the retirement the moment in which he was going to proceed to receive the revenues or the capital and the form in which it would do it.

And today this change is important in the legislation because for the world financial and economic situation, this is not a good moment to proceed to recover the funds invested in the pension plans, which accumulate important descents in the last months. It is advisable in these moments, that if this money is not needed urgently, we paralyze the money collection and postpone it until we see that this situation is more favorable.

What are the options that we have to receive a pension plan?

Two systems exist: in revenues and in capital.

The difference is that in the last option, that of the cashing in capital, the payment of the accumulated in the plan is received from only one time, by what the fund is cancelled. Fiscally, all the contributions that were carried out before December 31, 2006 as well as the yields that correspond to these quantities support the reduction of 40 %, while all the later income stays out of this fiscal exemption.

In case of the cashing in revenues, this one consists of receiving the money in cashings distributed throughout a time in equal amounts, as if of a pension it was talking each other. This financial revenue is supported until now in that the pension fund becomes exhausted. There exists the possibility that the revenue is constant and always equal, or variable with a percentage of agreed growth. After there comes the moment in which it is desirable to charge, we must communicate to the Entity with which we have the Plan, the annual quantity that we want to receive and the number of period in which we want it. Also, we will have to say to him the month in which we want to begin to receive it and if we want that the revenue is constant or increasing.

Inside the revenue system, there exists the change of the insured revenue in which there is signed an insurance policy of life with which we will be able to receive a monthly revenue during the whole life of the beneficiary of the plan.

Finally, there is a form that turns out to be somewhat mixed, and it is the one that allows us to receive the funds of the plan in payments without any regularity. The extreme only one in this case is of 3 annual payments a maximum and 600 euros of minimum each one.

In a following article we will speak to you on the tax system of these perceptions.

To read more on: Pension plans, financial Products
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