How the retirement simulator of the Social Security electronic office works
The contributory pensions of the National Institute of Social Security (INSS @info_TGSS) are paid through the current account that the user has specified when processing the pension application. This entity must be indicated at the time and simultaneously with when said processing is carried out. Therefore, if we need an advance of it, it has to be done through the bank where we have decided to domicile it, and not through Social Security.
The pensioner can choose between different financial entities at the time of receiving their income, such as banks, savings banks and rural banks, and credit cooperatives, or also groups that include said banking institutions.
For this, you can have a specific checking account or savings book, in which the recipient must appear as the holder, so it is individual and Its sole purpose is to receive the pension. These are special accounts for the elderly pensioners and that, like all financial products, require a series of requirements.
On the other hand, there are ordinary checking accounts or savings books, in which case ownership can be shared, so that It is not exclusive that only the oldest person who benefits from the benefit appears. Your legal representative may also appear as one of the account holders or another person.
Depending on what type of account and the entity in which we have contracted the services, pension advances can be made under one or other requirements. A lot of bank accounts created especially for the receipt of the pension, which are defined as a payroll, pension or senior account, offer more facilities for an advance on it. Thus, for example, instead of receiving it at the end of the month, some offer the option of having it as of the 25th of each month. Which is an incentive for many pensioners when hiring them.
Now, you must bear in mind that these accounts, in addition to offering advantages for being a pensioner, also require a series of minimum compliance. In some cases, a minimum amount of the pension is requested, it depends on each entity, which of course has to be domiciled, and some other condition such as hiring an associated product, which is usually a debit or credit card. However, if it is another product such as life insurance or similar, it is better to consider whether or not we are interested in this possibility, because then it will be more difficult to break the contract with the entity in the event that we do not like its operation.
If we have an ordinary checking account, then we will have to speak directly with the entity to find out If it is possible that the amount received from our pension will be ahead of us a few days. Perhaps it can be done in a timely manner at no additional cost, but if it is something that we are going to need periodically, it is important that we are clear about what the bank is going to ask us in return.
There are other possibilities for us to advance a larger amount of the pension. In these cases we are talking about a bank loan. Some banks allow this request, generally the amount corresponding to a series of months or a low figure is advanced, around 3,000 euros. The normal thing is that it is returned between three or six months, and it is established a specific amount of money depending on the solvency of each client.
In these cases, you should look at the small print and, of course, in all the details that this product implies. You have to see in what term you have to return it, what will be the amounts of the installments and above all the interest rate that they will charge you. You should consider whether it is really worth asking for an advance through a loan, because in the end you will always have to pay more, since you are hiring a new product regardless of the pension you charge.
You must analyze the opening and early cancellation fees, and what it means to pay it in more or less time. It’s about picking up the calculator and doing numbers, and carefully evaluate if this is the best option to dispose of our money before.
On the other hand, there are management companies that are not financial entities, but that They are dedicated to offering credits with the message of “payroll advance” or “pension advance”. These are not advisable, since being intermediaries with the banks that receive our income, they will charge higher interest, and the amount to be returned it is much higher than the upfront money we ask for. For this reason, it is not advisable to resort to these methods, since in the end the total amount that we are going to pay for the service is quite high and can mean a significant reduction in our purchasing power.