John Labunski Three Tips for Planning for Retirement

 Three tips for planning retirement

Retirement is the phase of life in which more resources are needed. And with the public pension, in many cases, it is not enough to preserve the quality of life that we maintained while we worked.

The Government recommended that Spaniards complete the public pension plan with a private one. The public system cannot handle everything, nor can it be asked for what it cannot give."

To plan this stage that reaches us all, from John Labunski we want to give you some advice so that you contract the plan that best suits your circumstances.

Be foresight. As the years go by, it is convenient to start allocating a regular contribution to a pension plan. If we don't do it this way, retirement or any previous eventuality can catch us without a plan B.

Know yourself. We have to analyze if we do not need the money that we are going to put into the pension plan, since the minimum stay in it is ten years. Similarly, we must think about how we react to losses, to gauge whether our product is a more cautious or aggressive one.

Trust the manager and look at the commissions. Only 5% of pension fund and plan managers manage to beat their benchmark index. This is something that, taking into account long-term compound interest, can make a lot of differences in the profitability that we get for our money. In addition to looking at the type of manager and composition of the portfolio in which the pension plan invests, another key factor is commissions. Low commissions, such as those applied by our pension plan, are the first source of profitability. It is sad to see how many participants see that the low return obtained after 20 years of savings has gone practically entirely in commissions for their bank. When choosing how to manage our savings for retirement, we must think long term. If you leave us, we help you.