The probability of betting on an unfavorable retirement savings plan (PPR) to create a good retirement complement is great. Or rather, very large. The conclusion of our experts is that 99% of the PPR does not offer the best profitability of the market.
And the caricature is that many of these investors, the vast majority perhaps do not even know, because they do not know the income of your product and never put it side by side with other PPR, possibly more profitable.
In the last five years – a period that allows a more consistent analysis of profitability – PPR funds (with no guaranteed capital but with higher valuation potential) gained an average of 0.9%, but Decent's 6.7% per year. That is, for every 10,000 euros invested, the savers lost 580 euros per year, on average, for not having chosen the best option.
But the losses may be higher as the less profitable PPR fund slipped to negative ground, gaining -1.2%. In this case, the losses totaled 790 euros per year.
Committees should also be taken into account
It is not only the income that varies according to the PPR. The commissions charged by the management entities – underwriting, management and deposit and redemption – also depend on the product. It is crucial to choose a PPR that does not have a very heavy cost structure.
See the differences. The average subscription fee is 1.2% of the amount that the investor delivers at the first moment, but there are several PPRs that charge 5%. For management and deposit commissions the average is 1.7%, but there are PPR which charge 4%. And, to redeem, the average cost is 1.1%; however, there are commissions that can reach 5% on the amount to be redeemed.
Compare and transfer
To find out if your PPR has an interesting profitability, go to www.ganhemaisnoppr.pt, the new Deco simulator, and put it to the test. This tool allows to compare the yield of the last three years of the almost 700 PPRs in the market, in the form of fund and insurance. Enter your name, email and telephone contact. In a few seconds, you will receive an email confirmation in your email, so you can complete the registration and advance to the simulation.
Confirm the e-mail, select your PPR from the list of products available in the simulator and wait for the verdict. In less than a minute you will also receive in our email our analysis.
With the result of the simulation, you get to know the yield your PPR and the best proposals of PPR funds and PPR insurance, and also whether or not to transfer. This comparison is based on the annualized yield of the last three years. Do not be surprised if the PPR you currently own has a profitability equal to or higher than our proposals. Next to the results presented in the page www.ganhemaisnoppr.pt you will find an explanatory table on how to interpret this information.
You will also find an alert button, which we recommend that you activate, to be warned, by sms, whenever our recommendations are updated.
To download your PPR, just click on "Learn how to download" (also possible option in the email you received with the result of the simulation). From this moment, you are redirected to the website of the fund management company or the PPR insurance you have chosen, which will help you complete the transfer process.
It is up to you, of course, whether or not to move forward, but keep in mind: if you are dealing with long-term savings, small repeated income differences over several years or decades can represent thousands of euros lost.
- More information at this link