What is a Personal Retirement Plan?
A Personal Retirement Plan (PPR) is a financial tool that allows individuals to plan and secure their economic future by investing over time, guaranteeing a decent retirement and reducing financial worries. The complementary and voluntary contributions made can be deducted in the tax return, providing tax benefits, according to the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
Advantages and benefits of the Personal Retirement Plan
A PPR offers numerous advantages. It allows individuals to invest in a planned manner to ensure a dignified and comfortable retirement. In addition, supplemental retirement and long-term voluntary contributions made directly to a retirement subaccount or special savings accounts may be deducted when filing your tax return.
Institutions that offer Personal Retirement Plans
Various financial institutions offer PPR. When evaluating options, it’s essential to research and compare rates of return, commissions, and additional benefits they may offer. Here, the Tax Administration Service (SAT) enlist the institutions that offer the Personal Retirement Plan.
And what about the SAT?
The Tax Administration Service (SAT) establishes specific requirements for the deduction of contributions in the PPR. It is essential to have tax receipts that support the payments made during the fiscal year, which can be recovered through the SAT Portal.
Requirement of permanence in the Retirement Plans
A key consideration is the tenure requirement. Contributions in a PPR must not be withdrawn before reaching the age of 65, except in cases of disability. Early withdrawal may incur taxes and withholdings.