Madrid, 5 April 2017. More and more Spaniards are starting to save sooner with a view to maintaining their standard of living after retirement. Long-term savers seeking a financial product to help them top up their future state pension, so as not to see their purchasing power reduced in what should be one of the most carefree stages of their lives.
The first piece of advice to all of them is that they must be aware that this is saving for the long term and that it must combine safety with profitability. There are two possibilities. The first is for savers to manage the risks and returns themselves throughout their working lives, which requires an extensive knowledge of financial markets. The second is to sign up to a plan such as Loreto Óptima, where the work is done for you.
In general, returns on financial products and increases in investors’ purchasing power depend on three variables: return on the investments, management fees and inflation (increase in the CPI). Only a pension plan that effectively combines these three variables can meet its target.
Our personal pension plan, Loreto Óptima, recorded a return of 4.35% in 2016, exceeding the average profitability of the national market, which stood at only 2%, according to data from INVERCO. If we compare its profitability with CPI growth over the last decade, Loreto Óptima has appreciated by 18.6% above inflation. However, Loreto Mutua also applies management (0.5%) and custody (0.1%) fees which are well below the average 1.54% for the Spanish market. Thus, every euro invested in Loreto Óptima not only generates profitability, but also sees the saver’s capital increase in value. For example, an investment of €100 in 2005 in Loreto Óptima, would now amount to €173.
To conclude, Loreto Mutua’s specialisation and independence mean that year after year the profitability of our products and the low management fees which we apply have a direct positive effect on our clients’ savings capacity, in contrast with non-specialised institutions or large financial groups with interests in the financial markets and with high-cost products.
