In a short time, self-employed workers who have a pension plan will be able to withdraw their savings without having to reach retirement age. An option that many workers who find themselves in a difficult financial situation and need liquidity may need.
Pension plans are one of the most popular tools for self-employed workers who want to improve their future benefits. This savings and investment product is one of the most common and it is estimated that most people who have one are self-employed workers.
Not in vain, according to the latest data from Social Security, retirees from the Special Regime for Self-Employed Workers (RETA) receive an average of just over 950 euro per month in benefits. This is a pension that is too low, and many self-employed workers are forced to supplement it with a private product.
However, on some occasions, the self-employed person may find themselves in the situation of needing this money before they have retired. This option of withdrawing money from a pension plan early is, to date, limited to very specific cases, such as a serious illness.
However, with the entry into force of Royal Decree 62/2018, of February 9, the regulations on pension plans and funds will be modified and it will be allowed for the first time to redeem a pension plan without having to be retired.
Although this new rescue measure would not require any conditions other than having a plan that is at least ten years old, it does not apply to all financial products. “It affects individual pension plans.”
The downside of the plan is that it will alter the tax burden and so individual financial advice should always be obtained from a qualified professional.
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