New Government punishment to pension plans: reduces the maximum annual contribution to only 1,500 euros

The General Budgets of the State (PGE) of 2022 contain a new hit to private savings: the maximum that can be provided to individual pension plans will be reduce

New Government punishment to pension plans: reduces the maximum annual contribution to only 1,500 euros

The General Budgets of the State (PGE) of 2022 contain a new hit to private savings: the maximum that can be provided to individual pension plans will be reduced again and will remain in just 1,500 euros. The Government has already drastically reduced this figure from 8,000 to 2,000 euros and now, despite the petitions of the sector so that it will be revised upwards, it applies a new reduction of 500 euros.

This decision is framed in the Government's strategy to promote the company's plans above the private and that, according to the Minister of Social Security, José Luis Escrivá, is one of the keys to saving the pension system. And in that same context, the reduction of private plans has an increase in the maximum contribution in those of companies: from 8,000 to 8,500 euros.

The measure has barely been cited as passed by the Minister of Finance, María Jesús Montero, during the press conference after the Council of Ministers in which the budgets have been approved. But she subsequently she has specified these figures that, no doubt, will generate a great discomfort in the sector.

In fact, just two months ago, the Association of Collective Investment Institutions and pension funds (Inverco) proposed to increase the limit of contributions to individual pension plans at 5,000 euros.

Inverco highlighted at that time that, with data from 2019, this elevation of the limit would not have a "relevant" budget effect, but "it would allow to incorporate into the collective to be included in the limits of contribution to almost 30% of the contributors of 2020". The government, obviously, not only has not attended this request, but has increased the limitations of what can be provided for a private pension plan.

Updated Date: 08 October 2021, 12:05

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