Pension plan: build your peace of mind for the future?

Get ready for retirement It is important to enjoy a comfortable and carefree life, but retirement is usually projected as something long-term, especially at a young age.

And it is precisely in the youth phase that you should start with a personal pension plan that consists of saving and investing money for your pension.

For Maru Caballeropersonal finance expert, a personal retirement plan is to have the right financial instruments after retirement.

Consider that retirement does not necessarily have to be at an advanced age 57 and 62 years oldbut it will also depend on the age of the person who wants to retire.

“Having a retirement plan basically means that our future doesn’t necessarily depend on a Social Security plan,” the expert added.

A personal pension plan is useful when the person is of legal age, when the person will not be actively working to maintain his standard of living.

According to the expert, the ideal age to start a personal pension plan is only one starts working.‘

10

Years after creating a personal pension plan, you have the option to withdraw money.

57

years for women and 62 for men is the retirement age in Panama.

“If I start working at 18, it would be ideal to start from there. The younger I start, the more time I have to prepare, which means I will contribute less,” he explained.

On the other hand, if you start your plan at age 55, what you have to contribute is likely to be significantly higher than if you started it at age 55. 20 and 30.

Before you apply for a personal pension plan, you must also consider managing your budget, as you may want to contribute 30% of your income, but may not have that money due to debts or other obligations.

When to withdraw money?

As for withdrawing that money, Caballero indicated that it depends on the account that is opened. There are private pension accounts held by pension fund managers.

These accounts can be opened, and for 10 years monthly contributions must be made and companies invest money for one, but they charge high commissions and this must be taken into account because it ultimately affects their profitability, explained Caballero.

He explained that after 10 years have passed since opening the account, you have the option of withdrawing that money or keeping it invested there. “If I opened an account at 20, at 30, I have to make a decision,” he added.

Another possibility is to open an account in another institution, which is not necessarily the manager of the pension fund, but an account in which you invest monthly or depending on how it was opened.

You can withdraw part of the money or withdraw monthly; However, this will depend on how much money you have invested as well as commissions.

In the event that the account holder dies before the personal pension plan can take effect, that money can be claimed by the beneficiary.

An important aspect that must be taken into account is that the companies where the account is opened must always ensure that it is properly monitored and verified by the entities.

For example, pension managers are under the supervision of the Supervisory Board Panamanian securities markets. They are regulated entities like banks.

The expert believes that people are now becoming more aware when creating a personal pension plan and believes that social networks have helped a lot in raising awareness of this issue and the many online platforms that have made information more available in terms of power. do your research and see what options there are.

Furthermore, he believes that a good job has been done in raising awareness of this issue, but although there is still a long way to go, they are on the right track.