The PP plans to recover tax incentives for individual pension plans

He Popular Party is already considering measures related to Social Security and private savings for pensions. The main opposition party points to Moncloa, recovering his economic philosophy in the third pillar, that of individual plans. The reform package of the legislature that is ending has lowered the limit of tax deductions from 8,000 euros per year to 2,000, and then up to 1,500 euros. Genoa sources confirm the intention to recover the incentives of individual pension plans based on the audit of the accounts prepared.

“Our intention is to increase it taking into account the audit and public accounts,” they explain. For this, the road map that the PP sets in case of reaching the Government goes through rely on the main economic institutionsthe Bank of Spain and the public audit, AIReF, in addition to other applied economics think tanks, such as Fedea.

The PP considers that the deductions have a fiscal cost –a salary can be taxed on your work income up to 1,500 euros less if you make contributions to the third pillar-, hence they condition the return to a more attractive taxation to a greater margin of the public accounts that they want to audit.

The direct effect of the reduction of the deduction on personal income tax results in a drop in contributions of 32% during 2022. The bulk of the assets of the pension funds continues to be the third pillar, with some 80,000 million, although in the first year with the current deduction of 1,500 euros the assets were reduced by about 9,000 million.

From Inverco, its president Angel Martinez Aldama The lower tax incentive is directly related to this drop in contributions. On the approach of the PP, they believe that the “reconstruction of the contribution limits would be the best scenario, but there is still a long way to go.” Through elections, a new government and new economic portfolios. And in Feijóo’s deck, still several economic minds.

A partial solution?

Mercer’s attorney and Ocopen member, Antonio Mendez Baiges, considers that the approach of the PP in the face of a hypothetical legislature in Moncloa would suppose a partial solution. The key: it is about recovering the amount of money saved, but also The aim is to add more participants to the plansthat is, that private savings cover more people.

“If they extend the contribution limit again and reduce the limit of the personal income tax base, the contributions will be recovered, but it is more difficult to add more people,” he explained to elEconomista.es. From his point of view, he believes that additional measures would be necessary to “gain new territory” for future retirees by generating pension savings. The thesis that he defends is that, who already contributed up to 8,000, will add 8,000 euros a year to his plan; but It does not represent a key change for the worker with less saving capacitynor for those who do not have a plan in the third pillar.

One option that could be put on the table and that the sector defends has to do with the tax deferral of contributions. Savings are granted once redeemed, therefore the bag generated in the participant’s plan simply eludes the Treasury until the moment it is recovered, normally in retirement.

Contributions made up to December 31, 2006 that are rescue in the form of capital They pay only 60% of the amount. Therefore, the Treasury would be making an effort in terms of lower tax collection.

Reversing the trend of saving in third-pillar pension plans is put on the table as one of the objectives of the popular formation in the event of reaching the presidency. In the words of his deputy, elvira rodriguezcriticized at the closing of the Inverco assembly that the Government reduced the savings capacity of the third pillar without having the public fund ready. “A saint has undressed without dressing another,” she said.