Profitability of 11.2% for retirement: guaranteed pension plans are back
Redacción Mapfre
The profitability of guaranteed pension plans once again attracts investors' attention. This type of product, characterized by securing the invested capital and offering either a fixed return or one linked to an index, had been overshadowed during periods of low interest rates, when guaranteed returns were less attractive compared to other investment options.
However, the shift in monetary policy by the European Central Bank (ECB) has created a favorable interest rate environment that supports less risky, long-term products, now offering somewhat more attractive returns. And this is where the guaranteed plans come into play. If companies previously had few options when betting on guaranteed options, due to uncompetitive returns, this year they have been encouraged to launch products of this type.
Am I interested in a guaranteed pension plan?
A guaranteed pension plan is an investment product that assures the investor of recovering the contributed capital at maturity, along with a predetermined return or one linked to a reference asset, which may include stock indices (variable income) or bonds (fixed income).
The security offered by these products lies in protecting against market fluctuations, which distinguishes them from other more volatile investment vehicles and makes them suitable for financial planning with a view to retirement: at the end of the term, both the capital invested and guaranteed profitability will be returned.
That is why they are mainly aimed at more conservative investors, who are interested in protecting their savings against the uncertainty and swings of the markets. More specifically, they are preferred by those approaching retirement age and seeking to minimize risk exposure. However, it also attracts young people who want to diversify their portfolio with a low-risk option that guarantees capital and return.
Unlike traditional pension plans, which are subject to stock market and/or fixed income fluctuations and can generate losses, guaranteed plans assure the return on initial capital and offer a fixed return. Mutual funds, for their part, do not guarantee capital recovery and depending on the type of assets that make up their portfolios, may entail more risk.
They also differ from Individual Systematic Savings Plans (PIAS - Planes Individuales de Ahorro Sistemático), which, although they offer tax benefits and the option to convert savings into lifetime annuities, depend on the performance of underlying assets.
Mapfre Puente Garantizado VI
The return of guaranteed pension plans as a main investment option reflects the evolution of the financial environment and investors' desire to find solutions that prioritize capital protection. MAPFRE has leveraged this context with the recent launch of Mapfre Puente Garantizado VI, a plan that ensures a return of 11.2% (TAE 2.00%) at maturity, with a horizon of 5.5 years (04/30/2030).
This product offers capital guarantee and high return on the initial amount invested, which provides investors with stability and protection against market fluctuations. MAPFRE has also designed the PPSI Mapfre Puente Garantizado V, an Individual Social Protection Plan (EPSV - Entidades de Previsión Social Voluntaria) with similar conditions of guaranteed capital and insured return.
At the same time, MAPFRE has launched a campaign offering bonuses of up to €4,500 to customers who transfer their pension plans and Insured Pension Plans (PPA - Planes de Previsión Asegurados) from other institutions to its "Tu Futuro" program before the end of the year, boosting trust in its product network for retirement planning.
