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The first thing you should keep in mind is how much income you will need for your retirement. More or less calculates that it would be ideal to get between 70% and 80% of your current net income , while we are active labor we will need more liquidity, it is normal to have more expenses than during retirement. For this stage it is better to have settled the mortgage or the loans that you had. You will arrive more relaxed!

Anticipate the expenses that you will have

Being retired is usually synonymous with more time available to enjoy leisure activities. Take into account the expenses in this area as well as the usual expenses in clothes, food … And do not forget that a high percentage of retirees have to assume dependency costs to perform daily tasks. It is also true that, from the age of 65, discounts are applied to many leisure activities and important expenses such as medicines or public transport.

If you think that when it comes to retirement, you have not yet settled your mortgage or, if you have children, that by then you will still have to help them finish their studies, quantify these needs and calculate the time they can foreseeably last: so you will not have to give up your level of life to be able to meet them.

Saving from young

Start saving as soon as possible, even if it seems far away. The sooner you start thinking about your retirement the easier it will be to reach your goal. It is recommended to start between 25 and 30 years to arrive with a good mattress, have economic stability and not go drowned once retired. Preventing in advance can avoid many headaches in the future.

For example, if you start saving at 45, you will have to contribute twice as much annually as if you started at 30 to constitute the same capital in your retirement (67 years), supposed a return of 2.7% per year.

How to make the contributions?

It is much more convenient and requires less effort to make periodic contributions (monthly, and better at the same time to receive income) than to make one a year of a higher amount. Your pocket will be less affected if every month you put into a pension plan or any other savings product 50 euros, if you decide to make an annual contribution saving 500 euros at once.

Adapt the contributions to your income

To begin, save with small amounts (between 30 and 50 euros, or one that fits your budget and lifestyle) and every year you can progressively raise the amount you add to your savings. With 30 years, surely your income will be lower and you will not be in such a hurry to save for retirement because you have a long time to recover it, start with small amounts and set yourself an annual goal to raise contributions.

Let yourself be advised by experts

To choose the savings plan that best suits your needs let yourself be advised by experts who will help you manage your economy. They can help you by suggesting the product that most closely matches your financial goals , not all seek the same objective, or have the same tax treatment, and surely with help find the formula that best suits your needs. Listen to the tips!

Fixed or variable income?

The younger you are, the more risk you can afford in your investment, so it may be more advisable to invest at the beginning in equities because you can get higher profits, although your capital is more at risk. As you approach the expected retirement age, you can invest in a mixed income product (fixed and variable). A few years after retirement , it is best to bet on fixed income and secure your income. You will get fewer benefits, but you will run fewer risks.

In any case, it is always advisable to allocate a part of your savings to a product with guaranteed profitability, for which long-term savings insurance is an ideal instrument.

Check it annually

There are many variables that can influence the planning that you have planned, so it is essential that you review annually how your forecasts evolve . Do not forget that you have a part of your future in your savings plan, every year examine how it has gone and decide the next steps you will take to continue increasing ‘your mattress’.


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