When talking about private savings products are a variety of concepts that can be confusing sometimes. So today we want to tell the difference between an Insured Retirement Plan (PPA) and Individual Systematic Savings Plan (PIAS).
Both a PPA as a PIAS are certain long-term savings to ensure the person who hires a return, along with various tax advantages.
In the case of insured retirement plan, do deducted for the Income Statement, with a direct reduction in the income tax base, and in the case of Individual Systematic Savings Plans tax advantage is gained when they received at maturity of the policy, with the requirement that is received as an annuity.
One of the main differences between Insured Retirement Plan (PPA) and Individual Systematic Savings Plan (PIAS) is that in the first case is saving for retirement and second accumulated capital can be used or redeem, good retirement or when requested by the policyholder.
To this we must add that the money contributed in Insured Pension Plan (PPA) and profitability are charged when the person retires. Meanwhile, to rescue money Individual Systematic Savings Plan (PIAS) before retirement is required that two years have passed since the hiring plan.
The maximum contribution per year in the PPA changes depending on age, with 10,000 euros for those under 50 years and 12,500 euros for those with 50 or more. However, the maximum annual contribution in a PIAS is 8,000 euros regardless of age. The maximum total contribution for PIAS is 240,000 euros and the policy must have a minimum of ten years.
Now you know the main differences between Insured Retirement Plan (PPA) and Individual Systematic Savings Plan (PIAS).