Saving for retirement with supplementary pensions

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Saving for retirement with supplementary pensions


The world of work in Italy is still dotted with atypical contracts characterized by precariousness despite the proclamations made by successive governments from time to time. To lose the young people of today who find themselves at the time of retirement often with a handful of flies in their hands. The best thing to do is to be pre-emptive and play all the cards you have today. Among these stands out the complementary pension, a form of savings that is added to the normal Pension which is provided by the INPS.

Supplementary pension: what is it?

The supplementary pension, in addition to the possibility of obtaining a supplementary pension from the compulsory pension, represents a savings opportunity which makes it possible to face any personal and professional difficulties with more serenity, also facilitating exit from the labor market and the transition to retirement.

It’s COVIP, the Pension Fund Supervisory Commissionand, specifies that in evaluating the possibility of subscribing to the supplementary pension, it considers that:

  • if you are a young man, time is on your side. By contributing to a pension fund from the start of your career, you can accumulate significant savings to build up an adequate supplementary pension and deal with possible work interruptions;
  • if you are an employee, you may be entitled to the employer’s contribution;
  • you can make withdrawals from your individual position as an advance or redemption to meet unforeseen expenses related to personal situations and professional life (medical expenses, purchase of a first home for you or your children, unemployment, disability);
  • in certain situations of need, you can also benefit from an early retirement pension.

The supplemental pension plans that exist today are:

  • Traded pension funds: these are forms of supplementary pension established within the framework of collective, national or company negotiations. The so-called territorial pension funds also belong to this type, ie established on the basis of agreements between representatives of employers and workers belonging to a specific territory.
  • Open pension funds: these are supplementary retirement formulas established by banks, insurance companies, asset management companies (SGR) and brokerage firms (SIM). Open pension funds can collect contributions on an individual and collective basis.
  • Insurance-type Individual Pension Plans (PIP): these are supplementary retirement formulas established by insurance companies. PIPs can only collect memberships on an individual basis.
  • Pre-existing pension funds: these are complementary pension schemes so called because they were already established before Legislative Decree 124 of 1993 which introduced organic regulation of the sector for the first time

How to subscribe to the supplementary pension

I’membership is voluntary. It is possible to join according to the collective agreements applicable to your sector, your company or your territory (collective membership). Affiliation to a negotiated pension fund or to a pre-existing pension fund can take place in one’s own company, at the headquarters of the pension fund, at that of the unions signing the agreement or the patronages designated by the fund.

Joining an open fund or a PIP can be done at the headquarters of the companies (banks, insurance companies, investment companies, portfolio management companies) that have set them up or through subjects designated by the companies. themselves. Membership can also be authorized via the web.

How are investments made?

the supplementary pension plans they offer several alternatives for placing their contributions, called investment lines (or compartments). The investment lines differ according to the financial instruments purchased. In the investment of contributions, supplementary pension schemes must comply with rules of prudence, defined by law, which take into account the social and non-speculative purpose of the investment. For example, underlines the COVIP, investments must be sufficiently diversified and quantitative limits are provided for the purchase of certain financial instruments considered more risky. In negotiated pension funds, investment management is entrusted to professional operators (bank, management company, SIM, insurance) on the basis of an agreement which defines the criteria with which these operators must comply. In open pension funds and individual insurance-type pension schemes (PIP), investments are generally managed directly by the company (bank, management company, SIM, insurance company) that created the open fund or PIP. The resources of open pension funds and PIPs constitute an independent asset distinct from that of the company.

What can be done with supplementary pensions

After having reached the mandatory retirement conditions established in your affiliation scheme, and provided that you have at least five years of participation in the supplementary pension, you can choose the type of benefit to be obtained with your individual position:

  • transform their entire individual situation into an annuity, thus receiving the supplementary lifetime pension;
  • obtain up to a maximum of 50% of the accumulated capital in a single solution and the balance in the form of an annuity;
  • liquidate the entire capital, if this falls within the cases provided for by law.

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