The lack of employment and precarious salaries, the high life expectancy and the low birth rate is the yoke that the public pension system is trying to solve and the reason that is leading the population to take an interest in pension plans. A form of private savings that allows its use before retirement in certain cases.
The Mapfre company explains that a pension plan is a financial instrument for investment and savings aimed at retirement. In other words, after a series of periodic contributions over a certain period of time, the client will have capital or income at the time of retirement. However, there are certain assumptions in which you can dispose of that money before retirement.
When can you withdraw money from the pension plan before retirement
The norm establishes a series of precepts in which its extraction before retirement is allowed. Some exceptional cases that seek to grant pension plans greater liquidity than they have, in order to encourage their contracting, and prevent illogical situations from occurring when, due to a prevailing necessity, “the participant needs to resort to his savings but can’t do it”, explains BBVA. Thus, these cases are:
1. Disability
2. Death
3. Severe dependency or great dependency
4. Long-term unemployment
5. Serious illness
6. Money may be withdrawn from plans that are at least 10 years old. The first redemptions for this contingency may be made as of January 1, 2025.
Withdrawal of money from the pension plan during the Covid-19 crisis
The Government’s plan of measures to deal with the economic effects derived from the state of alarm for Covid-19 expanded the cases in which the client could withdraw money from their pension plans in Royal Decree-Law 11/2020, of 31 March, and which was completed in article 23 of Royal Decree-Law 15/2020, of April 21. These assumptions were:
1. Being in an ERTE derived from the health crisis situation caused by Covid-19.
2. Being the owner of establishments whose opening to the public has been suspended as a result of the virus containment measures.
3. The self-employed who have ceased their activity as a result of the health crisis situation caused by COVID-19.
4. The self-employed who have had a reduction of at least 75% in their billing in the calendar month prior to the one in which the availability of the pension plan is requested.
The extraordinary withdrawal under these assumptions could only be made during a period of six months from the entry into force of Royal Decree 463/2020, of March 14. However, RD 11/2020, of March 31, included the possibility that the Government could extend the expected period of 6 months during which to request the collection of pension plans. An extension that has not occurred.
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