Pension tips for every life situation
Tips for young people
The subject of pensions might not be very exciting, but it is very important. If you address the matter early on, you’ll reap the benefits later.
iStock / miodrag ignjatovic
If you are young, there is a chance your savings contributions might just turn into a small fortune thanks to the long investment horizon.However, you also face the uncertainty of not knowing what benefits the state and occupational pensions will offer once you reach retirement age.
For this reason, you should strive to build up your savings regularly and consistently over the long term. Pillar 3a investments with a relatively large equity component are suitable for this purpose. In the past - despite intermittent slumps in the stock markets - such investments have consistently outperformed other forms of investment in terms of returns. Pillar 3a accounts also allow you to suspend payments if you plan to travel abroad for a long period of time. You can also benefit from tax incentives and deduct the payments from your taxable income to reduce your tax burden.
you can also use pillar 3a savings if you later wish to buy an apartment or house, or start your own business.