How to prepare properly for retirement

When you stop working, you lose the regular income you had from your wages. Experts today agree that statutory pensions only cover, at best, 60% of your usual household income. It's therefore essential to take out a private pension.

The best way to gain an understanding of your situation is to draw up a realistic budget for the period after retirement. In this budget, you list your income and fixed expenses. You will then see how much more wealth you ideally need to accumulate in order to maintain your desired standard of living. Topping up your pension fund is one way to build savings. The greater your retirement savings, the higher your lifelong pension will be.

The next step is to choose a saving strategy that takes into account your objectives, your willingness to take risks and your existing assets. Don't forget to consider aspects relating to the home you currently live in. Is your apartment barrier-free? How good are the public transport connections? Do you want to sell your house and buy an apartment that is more suitable for old age? After all, owning a property will also have an effect on your tax situation. You have to pay tax on the imputed rental value, for instance, but on the other hand the interest on your mortgages is tax-deductible.

If you are interested in early retirement, partial retirement, or reducing your working hours before retirement, you may receive some form of support from your employer in the form of a bridging pension or severance pay. This is worth investigating early on.