Employment pension plans, interesting for companies and employees
Posted: Wed Dec 18, 2024 6:23 am
Retirement is a stage in the life of every worker that inevitably arrives. For some, it is a relief to not have to work anymore, to forget about work schedules and hours and to be able to dedicate more time to themselves, their family and their hobbies. For others, however, it represents a void that they do not know how to fill.
Whatever the case, you have to be prepared for that moment, but above all you have to be aware that there will be a difference between your salary and your pension, which may be a lot or a little depending on various factors, including the number of years you have contributed while you finance and banking email list were working. So having some extra supplement such as a company pension plan would improve the financial situation of many workers once they retire.
The Toledo Pact as a guarantor of pensions
The public pension system is supported by contributions from companies and workers to Social Security, and is backed by the Toledo Pact. Both are obliged to contribute to this common fund so that the system continues to function, which is based on distribution and not capitalisation , so that although there is a belief that paying into social security guarantees receiving a pension in the future, nothing could be further from the truth.
This Pact only ensures that pensioners will receive a pension as long as there is a balance between active workers and retirees , but at the rate we are going, that perfect proportion is no longer the case. As things will be difficult to balance if things continue like this, the possibility of raising the retirement age to 67 is already being considered, and even reducing pensioners' benefits by around ten percent.
As time goes by, new proposals will be heard in an attempt to find the viability and balance of the system, which at first and without having to think too much would involve a drastic reduction in unemployment, which would logically mean an increase in contributors.
Whatever the case, you have to be prepared for that moment, but above all you have to be aware that there will be a difference between your salary and your pension, which may be a lot or a little depending on various factors, including the number of years you have contributed while you finance and banking email list were working. So having some extra supplement such as a company pension plan would improve the financial situation of many workers once they retire.
The Toledo Pact as a guarantor of pensions
The public pension system is supported by contributions from companies and workers to Social Security, and is backed by the Toledo Pact. Both are obliged to contribute to this common fund so that the system continues to function, which is based on distribution and not capitalisation , so that although there is a belief that paying into social security guarantees receiving a pension in the future, nothing could be further from the truth.
This Pact only ensures that pensioners will receive a pension as long as there is a balance between active workers and retirees , but at the rate we are going, that perfect proportion is no longer the case. As things will be difficult to balance if things continue like this, the possibility of raising the retirement age to 67 is already being considered, and even reducing pensioners' benefits by around ten percent.
As time goes by, new proposals will be heard in an attempt to find the viability and balance of the system, which at first and without having to think too much would involve a drastic reduction in unemployment, which would logically mean an increase in contributors.