New PPR with European passport has not yet entered Portugal
It is already in force at European level, but it is not expected that it will be available on the Portuguese market before the end of this year. The new Pan-European Individual Reform Plan (designated as PEPP in the English acronym) has been in force since the beginning of the week in European regularization, but, here, it is still a delayed process with the change of government in the past. Lack of knowledge of tax benefits so that savers can be tax advised.
Related
“National service that exists at the moment is the process of regularization and tax regime to advance so that by the end of the year of delivery of the product”, says Valdemar Duarte, – member of Ageas Pens and member of the advisory board EIOPA, European Insurance Authority and Complementary Retirement Pensions.
For now, the great novelty of this new savings product for retirement is the portability between the Member States of the European Union thinking “more mobile and younger population”, says the head of Ageas. “The product is transferable to another entity and is portable. Depending on the places where I live, I use [com as regras locais]. What can’t be is tax arbitrage. For example, in Portugal and will help to work on Luxembourgish. You need to have tax residency,” he explains.
In other advantages, PEPP promises lower costs, up to a maximum of 1%, in its most basic configuration, guaranteed capital. But it compares poorly in redemption options, namely, with the Portuguese Retirement Savings Plans (PPR).
subscribe newsletter
“By having a PPR, I can transfer it to another PPR with limited commissions. In addition to being able to benefit from the retirement, in case I redeem it on a long-term basis, serious illness, incapacity for work, and I can even use it to go paying the mortgage”, pointing out António Ribeiro, a specialist at Deco/Proteste. The PEPP will be “exclusively for a reform”. “The fiscal issue is the most important and is where our council will depend,” he says.
The new PEPP portability in the EU and lower commissions on basic plans, but still do not know the tax benefits.
The sector’s operators are waiting for the exit of the legislation, which will regulate the PEPP, from the government offices, which will only take office quickly in this budget proposal where, where, it will be difficult to ensure the rules of the new product soon. “But it was good to have a legal authorization to regulate later”, says Valdemar Duarte. “If that happens, our goal is to proceed with the tax regularization, only then can we approve the approval of the product we want to follow”.
The sector argues that this option of a less liquid economy that the Portuguese PPRs will take place will, however, be necessary for it to enjoy greater tax benefits. “It is essential that it has a good tax regime for deducting the collection at the entrance, and that this tax regime can be independent from the PPR”, understands the director of Ageas Pens.
Currently, and an age match of RS values up to 400 euros. On redemption, income is taxed at a rate of 8%.
If the PEPP does not increase, it may be due to the anticipated product from a tax point of view, but it may not advance the product from a tax point of view, despite everything, bringing changes to the market for application applications. “Competition will increase. Maybe the PPR will decrease, the commissions will be able to compete with these new products. From this point of view, it can be positive”, admits António Ribeiro.
The proposal for this, which is designated as the European PPR made by the European Commission in 2017, was adopted in 2019, and will enter into force on 22 March. The aim is to develop a single market for individual pension plans that complement each other as public and occupational pensions.
The new advanced product that, as Europeans, still maintains conservation levels as a result of, and faces, as brutal at the time of the pandemics, a prospect of reducing the ability to replace families, a prospect of reducing the ability to replacement of labor income. Fruit of the last salary, as the last European advances, on average, as Portuguese pensions represent only 54.5% of the last salary in 2040.
The PEPP and prices launched from war also added to the increase in the overall performance of the economy. Valdemar Duarte recognizes that “as short-term debt they hold back a little to a little”, but believes that, in long-term savings, this “conjunctural” situation is not reflected.