Retirement worries the Spaniards a lot. As the latest study by Aegon points out, ” The changing face of retirement “, 72% of the population foresees that the situation of future generations of retirees will be worse, which may change their current perspective on retirement, which is quite positive. Spaniards are more likely to associate their job retirement with terms such as “enjoyment” (37%), “leisure” (34%) and “freedom” (33%), than with negative terms. Although these are not far from positive, since 22% of respondents chose the word “insecurity”. If this pessimistic trend continues on the future of new retirees, it is possible that this percentage will gain positions, although the solution is simple.
And even though we see the future with more uncertainty and although we want to “enjoy” our retirement moment, there are still very few who already think at this moment and make a financial effort. The same study makes clear that it highlights that only one fifth (19%) of workers have a written pension plan, while 27% have a plan but not in writing. The remaining 55% do not have any pension plan.
All this despite the fact that planning retirement, regardless of age, must always be included among financial objectives, based in particular on how many years savings will last after retirement.
The sooner, the easier
Securing our retirement begins many years before turning 65, in fact, the sooner we start we will achieve better results and in a much easier way. Regardless of age or family situation, saving for retirement should always be a priority financial goal, but the more years left for retirement, the less amount will have to be allocated every month and you can get a higher income or capital to enjoy during this stage of life.
How should we do it? A few simple steps will help us achieve our goals by making a good retirement plan:
Calculate what income we need : We move our financial needs to the future, there are costs that usually disappear, such as mortgage payments or expenses associated with children and their education, but there are new ones such as those related to health, always leave a margin for incidentals.
Estimate our income : Calculate that we will receive for our pension is simple, the Social Security itself offers on its website the self-calculation of the retirement benefit. We must also add other accessory income, such as income from real estate or business benefits.
Calculate the difference : The greater the difference between the benefits and the needs, we will need a greater financial effort. Let’s see this difference both in terms of monthly income and the capital that we would need in total.
Estimate that we would need to save : We move this capital to what contributions we have to make to achieve it, if there are many years left it will be much smaller or we can bet to get more to go far beyond our basic needs.
Choose the product or financial products to achieve our goal: evaluating not only the pros and cons, not only fiscal, but also safety and profitability, for example through an Insured Forecast Plan we will always have our capital assured without giving up the profitability and with tax benefits.