How not to pay taxes
10/04/2023
It is 13 years ago this month that I spoke to you about guaranteed retirement pensions.
The returns obtained by occupational pension scheme managers is one of the major issues in the open tender to decide which entities the government will select to manage the new state occupational pension schemes. This is the summary of the article in Expansion (Spanish economic and business newspaper) in which three financial groups are named as being in the running to manage the new schemes.
In company insurance schemes, a term which I have never liked as it is neither attractive nor enlightening, fund managers, insurance companies and professionals providing advice for their client companies, should be assessed according to the returns they achieve for their executives or their stakeholders, if pension schemes are involved. The former are assessed for conceptual purposes, but they are not regulated in Spain by the Law regarding Pension Plans and Funds, but rather by the Insurance Contract Act. These are two distinct instruments with the same objective: to maximise accumulated funds on retirement.
It is 13 years ago this month that I spoke to you about guaranteed retirement pensions. The most powerful argument was and continues to be guaranteeing the retirement fund by means of a collective insurance contract taken out when the contributions are made. In recent years we have also learned that the executive’s freedom of choice is clearly more important than the single limitation of guaranteeing their retirement pension. Depending on the risk threshold of each one, which should be assessed and managed with the aid of professionals, the returns obtained in the case of active management of retirement fund portfolios has remained at an annual average of around 10% a year for the last 3 years. The returns on Pension Funds are bleak in comparison; I explained this 13 years ago.
I still think that the strategy for a private pension scheme, and I use the term in its widest sense, including collective insurance contracts, should not be the same as that used to manage assets. If I do not have control over my retirement fund and I do not want to bear any risks, I necessarily have to guarantee, on maturity, all the contributions made.
For client companies that have hired independent professionals, we have also been able to set up actively managed funds for their executives’ pensions, with well-defined strategies. These companies have provided benefits for their executives in the form of greater contributions to their retirement, and they continue providing them with benefits through the unique possibility of guaranteeing pensions receivable for life or for a period of time. We work together with client companies with the aim of also assisting them with the retention of executive talent, as well as the recruitment of good executives, as a result of the successful management of their retirement funds.
I am incredibly lucky to be able to help people to achieve their goal of having a retirement pension that meets their expectations and foresight, within the framework established by the client company. My greatest satisfaction is seeing their satisfaction when they come to receiving their pension or benefits: their gratitude is everything to us.
Today I am going to finish with a valuable extra in the form of the link to request an appointment. It is very easy for those who wish to guarantee an annual return of 3.5% with Treasury Bills. link to your 3.5%
Jaume Quibus
The actuary and economist Jaume Quibus holds a master’s degree in Financial Economics and Accounting, a degree in Actuarial and Financial Sciences, a degree in Economic and Business Studies from the University of Barcelona and has completed the Management Development Programme at the IESE Business School of the University of Navarra. He is a full member of the following associations: the Catalan Actuarial Association, the Spanish Actuarial Association, the Catalan Economists Association, the International Actuarial Association, the Catalan Association of Accounting and Management and also a member of the IESE Business School Alumni. He was a founding partner in 1998 of the actuarial company Quibus, and is corporate member number 6 in the Catalan Actuarial Association.