Financial Expert Warns: Are Pension Plans a 'Scam' Despite Tax Benefits?

Financial Expert Challenges Pension Plan Benefits: Are They a 'Scam'? Madrid, Spain – A financial expert, known as Tamara GT, has sparked debate by labeling pension plans as one of the "biggest scams," despite their often-touted tax advantages. In a recent video, GT meticulously breaks down the long-term financial implications of these savings vehicles, suggesting that the initial tax benefits may be significantly outweighed by taxes upon withdrawal. GT elaborates on the common argument for pension plans: tax deductions on contributions. She illustrates this with a scenario involving a 33-year-old individual contributing €1,500 annually. "Each year, we would save €500 on the income tax return," she states. Over decades, this could amount to substantial tax savings, such as €18,500 saved in taxes by age 67, assuming a 7% annual return leading to an accumulated fund of €244,000. However, GT points out that the true cost emerges during the withdrawal phase. She explains that if the entire accumulated sum is withdrawn at once, a significant portion is subject to taxation as income. "Hacienda keeps almost €118,000," she claims, referring to the Spanish tax authority. Even with a more favorable withdrawal strategy, she asserts that individuals could end up paying "€16,000 more than what we would have saved." Based on these calculations, GT concludes, "That's why I do not recommend pension plans." Her analysis highlights a critical perspective on long-term financial planning, urging individuals to consider the full tax cycle of pension plans before committing their savings.

okdiario.com

9 days ago

La trampa de los planes de pensiones que no te cuenta nadie: lo destapa una exp…

Una experta en inversiones revela en TikTok la gran trampa fiscal de los planes de pensiones y por qué podrían costarte más de lo que ahorras.