These are the ways to rescue a pension plan ahead of time. There are several standard assumptions contemplated in the regulations although liquidity exceptions are also included. A change in the law means that they can be recovered in 10 years.
Pension plans are conceived as a long-term tool in which amounts are deposited that, in the future, will complement our contributory retirement pension. However, unforeseen circumstances in our lives can cause us to need to get this money out ahead of schedule … and it can’t always be done.
The regulation of funds and pension plans that appears regulated in Royal Decree 304/2004, of February 20, contemplates that, in general terms, the contingencies that they cover (and therefore, reasons for being able to withdraw the money) are retirement , death , situations of total, absolute or severe permanent disability , as well as cases of great dependency or severe dependency .
In parallel, ‘exceptional liquidity cases’ are enabled with which people in certain situations can withdraw money from their pension plans ahead of time. The law refers to two specific cases:
-Serious disease: these are ailments that temporarily incapacitate or disable the activity for at least three months, or ailments that generate serious sequelae and that “partially limit or totally impede the occupation or habitual activity of the affected person, or incapacitate them to carry out of any occupation or activity “.
-Long-term unemployment: to fulfill this assumption you must be legally unemployed, have no right to tax benefits or have exhausted them and be registered as a job seeker.
However, a 2018 Royal Decree softened the withdrawal conditions of these pension plans, leaving a minimum date of 10 years from the first contributions , from which the plan can be redeemed. Plans created before 2016 will be able to start doing so in 2025.
Pension bailouts due to the pandemic
In addition, the exceptional circumstances of the pandemic made the Government allow the rescue of pension plans for those affected by a Temporary Employment Regulation File (Erte) until September 2020.
This extraordinary premise caused that, during the months in which said rescue was allowed, more than 60,000 people took advantage of it , with a total amount of 113.8 million euros.
