Golden SGF, a new Euroconsumers Invest (ECi) client, launched a retirement savings plan in partnership with DECO PROTeste. ECI will provide investment advice to Golden SGF in accordance with the criteria and limits of the objectives and investment policy defined in the PPR management regulation.
Retiring today means, in Portugal, you’ll get about 74% of your last salary. But if you add a few years of activity and the reform is still far away, you will not be so lucky.
According to the European Commission’s forecasts, the substitution rate (retirement versus last salary) will gradually decrease by less than half by 2050. That is, there is a risk that the State will be unable to provide a pension for old age as "generous" as it pays today.
The increase in life expectancy and low birth rates point to an ageing population and fewer and fewer active workers to support the payment of pensions. In short, you will have to start saving as early as possible to maintain the same standard of living when you retire.
With this in mind, Euroconsumers Invest adds this new Pension Savings Plan – PPR DECO PROTeste to its advisory portfolio.
How is it going to work in more detail?
The investment objective of the PPR DECO PROTeste, defined in the Management Regulations by Golden SGF, is to maximise the return on capital in the medium/long term through investment in the various asset classes while seeking to minimise volatility/risk through the diversification of asset classes, geographic areas and managers.
As for the benchmark allocation to assets is 74% in equity funds and ETFs (Exchange-Traded Funds, which are funds traded on a stock exchange) and 24% in bond market funds and ETFs. The remaining 2% is reserved for liquidity, an essential component in the day-to-day management of the funds.
The PPR DECO PROTeste allows it to complement the retirement pension of the public system, but it intends to go a little further regarding sustainability.
DECO PROTeste's PPR is inserted in article 6 of the SFDR (Sustainable Financial Disclosure Regulation), i.e., without integrating sustainability concerns.
However, Euroconsumers Invest, as part of the provision of the investment advice service for the selection of funds and ETFs, will propose to advise that the PPR portfolio should give preference to products, if available, that fall into two categories of the SFDR regulation (Article 8 and Article 9).
Overall, this PPR is a diversified product with tax benefits, and it is aimed at all Portuguese who want to save profitably for retirement without giving up concerns about sustainability. That favours the share component and ensures a complement to the national pension system.
Note: This information does not exempt you from consulting the Management Regulation of the PPR DECO PROTeste and the information document, available on the Golden SGF website.