Public welfare checks will be increasingly lower and further away and this is why it is necessary to think in time about a supplementary pension: this is the objective of pension funds, now used by one worker out of three in Italy (about more than 8 million out of a total of 22,5 million employed). To explain its advantages and convenience, even for those who struggle to make ends meet, is Andrea Lesca, Head of Network Relations and Corporate Welfare of Intesa Sanpaolo Vita, the insurance division that boasts a pool of 450 customers, of which around 250 subscribers to the new “Il Mio Domani” fund.
What exactly are the advantages of a pension fund?
“I would single out three in particular. First of all, they make it possible to deal consciously and in the most profitable way possible with the issue of supplementary pensions, which must be accompanied by the now increasingly less substantial public pension, especially for the Millennial generation. Then there are the economic benefits. The fiscal ones are threefold: the contribution that one chooses to pay periodically (which is absolutely flexible, can be fixed or proportional to income and can also be modified after joining) is detaxed up to 5.164,57 euros per year; returns will be taxed at 20% and not at 26% like other forms of managed savings (for example mutual funds); finally, the accumulated capital, excluding the financial returns already taxed in the accumulation phase but including the severance indemnity if paid, is taxed from a maximum of 15% to a minimum of 9%, if membership of the supplementary pension reaches 35 years, instead of to a minimum of 23%. Furthermore, there is the possibility of also having a contribution from the employer, if employees are employees and in the case of joining a collective fund, regulated by national collective agreements”.
But if a worker struggles to make ends meet in daily life, will he be able to think so hard about tomorrow?
“In reality, pension funds are absolutely flexible instruments. Membership is free, the sum to be paid is flexible (unless a company agreement must be respected) and it is also possible to pay one-off sums, as well as withdraw at any time, asking for redemptions and advances even if only in specific situations. In any case, to give an example, joining a company fund costs an average of 1% or a little more of the annual salary, i.e. taking an income of 20.000 euros costs 200 euros a year: a considerable figure but also sustainable by lower bands, and which allows you to then receive a social security contribution from the company. Anyone who has no way of periodically paying money can also be satisfied with this agreement, or to pay the severance indemnity, which is something we recommend”.
Why is paying the TFR so important?
“The payment of the severance indemnity allows the worker to increase his pension position more rapidly, without however reducing his spending capacity, because his income is not affected. And at the same time the figure set aside is high, corresponding on average to just under 7% of the gross annual salary.
What is the difference between pension funds and PIR?
“They are different savings instruments. The PIR is an investment with a blocked duration of 5 years, requires a minimum amount and contemplates a significant tax advantage as the PIR is exempt from paying the capital gain. It is also intended for a specific market, that of Italian SMEs, and designed specifically to support them. The pension fund instead invests in larger markets, especially international ones. But in fact, the pension fund can, for example, buy PIRs further diversifying its investments and thus benefiting from further tax breaks in favor of its customers".
How does the regulation of pension funds change with the 2018 Budget Law? Will it increase or decrease their appeal?
“It's being talked about these days, we await the response. There are two most important aspects that should change, making pension funds more flexible and therefore more attractive. First, the possibility of redeeming the supplementary pension even 10 years before retirement age (now at most 5), in the event of a fairly long period of unemployment, currently set at four to two years. Then the possibility of also conferring 50% of the severance indemnity to the pension fund: currently, either everything is paid, or it is not paid at all ".
What are the main features of Intesa Sanpaolo Vita's “My Tomorrow” product?
“First of all the cost, of medium-low level. We are around 1,5-1,6% commissions (in a 10-year period), in a market range between 0,5 and 3,5%, also including the registration fees that travel between 30 and 50 euros a year. Then the particularly active management, always aimed at achieving a profit in a dynamic way. Last but not least, consultancy and continuous customer assistance are central elements of our offer. We currently have about 250 customers, who pay an average of 150 euros a month in the case of an individual fund, and even double that in the case of a collective fund and/or severance indemnity payment".
