An SISP (systematic individual savings plan) is a very important financial alternative for those who wish to build a financial capital in the future. The current uncertainty of the work environment and the public pension system together with the great attention that this issue is getting from the media, is making us adopt more and more to a savings mentality in order to be prepared to face any unforeseen economic situation that may arise in a short, medium or long term.
But the savings plan, like any financial product, presents a series of specifications that we should be aware of and which will facilitate decision-making. Specifications that usually arise and provoke questions such as the following:
Do I have to contribute a first amount? If so, how much?
Yes, a first amount of between €60 and €3000 is required, depending on the type of product.
How does it affect my taxes?
From a tax perspective, it’s a very attractive product because the income from the payment of the initial premium until the start of the insured income, is free from taxes.
Can I configure the contributions according to my needs?
In this aspect there is a lot of flexibility. Contributions can be made monthly, quarterly, half-yearly, etc., although with a limitation of €8,000 per year.
Am I obligated to a minimum period of permanence?
It will depend on the company where the plan is contracted, although usually there is a minimum of one year.
What type of interest do the SISP present?
In recent years, the product has diversified into two branches, secured SISP, where interest ranges between 1% and 3%, and unguaranteed SISP, aimed at clients who contemplate taking on more risk and whose capital is partly invested in the financial market.
What is the real risk that I’m taking?
As we said in the previous point, there are more conservative products and others riskier, so it is in fact a variable that the taker decides.
When can I have access to my money?
At any time, considering the period of permanence required by the company, but if it is done before 10 years have elapsed, you won’t benefit from the tax advantages.
What sets it apart from a pension plan?
Mainly that the SISP is a liquid product, meaning you can take your money out at any time and that it’s not tied to retirement.