Guaranteed Retirement Savings Plan (PPA)

What are the minimum and maximum ages for taking out a contract?

The minimum age is 18 years and the maximum age is 63 years.

What is the Guaranteed Retirement Savings Plan?

The Guaranteed Retirement Savings Plan is an individual life insurance with variable interest which is guaranteed on a quarterly basis, the main coverage of which is to constitute a capital sum which is received upon the retirement of the insured. The variable interest rate cannot be less that the result from deducting one percentage point from the interest rate established by the Directorate General of Insurance.

How can one take out a Guaranteed Retirement Savings Plan?

The Ocaso PPA can be taken out by making the periodic payment of the premiums in accordance with the chosen form of payment. The initial periodic premium starts from 720 Euros per annum according to the chosen form of payment. The premiums will increase by at least 3% calculated based on a geometric progression. The PPA may also be taken out by means of a single premium, with a minimum payment of 3,000 Euros. In both types of procurement, one may make extraordinary contributions to the single premium in the minimum amount of 600 Euros.

Why should I take out a Guaranteed Retirement Savings Plan if I already pay Social Security contributions and this already guarantees I will receive a pension when I retire?

Due to problem of ageing population which is being recorded in developed countries, there is a certain unrest regarding the current and future situation in which the Public Social Security Systems will find themselves. With our Guaranteed Retirement Savings Plan, we offer you the possibility of complementing your income once you have retired and receiving complementary income which will allow you to come closer to the last wage received during your working life.

What advantages does this have over pension plans?

The PPA (Guaranteed Retirement Savings Plan), aside from the value of the policy, guarantees an additional capital in the event of death or disability of the insured.

What is the value of the policy?

It is the fund comprised of the contributions made by the insured person, revalued at the annual technical interest rate applied to each quarter, after having deducted management expenses, administration costs and the risk premium for death or disability, foreseen in the particular conditions. Its amount coincides with the mathematical provision.

What is the redemption value?

It is the sum received by the insured as a consequence of having reached the age of retirement, having decided to transfer his/her rights to another PPA or PPI (Individual Pension Plan) or having made an early disposal in the event of grave illness or long-term unemployment. This entails terminating the contract and it equals the value of the policy at that moment, without applying penalisations, costs or discounts.

What happens if the insured dies or is deemed disabled?

In the event of death of the insured, the designated beneficiaries shall be paid the value of the policy increased by 10% of said value, with a minimum of 600 Euros and a maximum of 6,000 Euros until the age of 65, at which point the additional amount shall remain at 600 Euros. In the event of disability, the aforementioned amount shall be paid to the insured.

Can I suspend the premium payments?

Having fully paid up the premiums for the first year, the Insured may suspend the premium payments, which will lead to transforming the policy into an insurance of the same type of policy and free from premium payments, according to the value of the policy in force at the time.
If so desired, the insured may resume the premium payments without having to pay the premiums unpaid to date and without having to pay any interest in concept of reinstating the insurance policy.

What tax advantages does a Guaranteed Retirement Savings Plan offer?

The annual contributions paid into a PPA reduce the taxable base of one's income tax. Said contributions have a maximum limit according to the age and the taxable income tax base of the insured, and according to the existing tax regime in each Autonomous Region.  When the benefit is received, its sum will be taxed as employment income, in accordance with the personal circumstances of the insured at the time it is received.