Planning for the pension may feel distant for many, but the fact is that we should all think about how we want life as a pensioner to look, not least financially.
The three parts of the pension
The pension consists of three parts. The general pension, which is automatically set aside for you and is based on the income tax you pay. In addition to the general pension, most people also have an occupational pension, which is the part that your employer retires for you. How much is paid to the occupational pension varies, but if your employer has a collective agreement that corresponds to what the employer deducts about 4 – 5% of your monthly salary.
Of course, this is a good foundation, but if you want to continue to live under the same, or at least similar, economic conditions you did during your professional life after your retirement, you should add the third part; a private pension savings.
The type of savings you should choose for your private pension savings depends, just as with other savings, on how committed you want to be. Since in most cases pension savings are continuous and in the long run, it is common to choose to save on an investment savings account or in an insurance scheme. How much do you then need to put aside for your private pension savings?
Retirement savings private
For starters, it is good to ensure that pension savings are continuous. One tip is therefore to have a sum that is automatically moved to your private pension savings each month.
When it comes to how much you should spend monthly on your pension savings, there is no answer that applies to everyone. Everything is about what you have for the conditions and what your plan looks like, but there are still some tips that anyone with a private pension savings can benefit from.
The first thing you should do to figure out how much to spend each month is to ask yourself how much money you want to live on after you retire? Do you want the exact same situation you currently have or is it enough to live on, for example, 70% of your current salary? Once you have decided, there are also other factors that come into play. At what time you intend to retire and how many years you have left until retirement age is of course important, in the same way that it does not matter how your previous pension savings look. Do you start from scratch or do you already have existing pension savings? All of these issues should be considered when planning for how much you should save for retirement each month, but the general rule is that the earlier you start and the longer you save, the better.
Invest your money with Mullog
Another option to grow your pension savings is to invest your money with Mullog. With low risk and high returns, you lend money to creditworthy individuals through our digital platform. When you save in the longer term, for example for your pension, you can choose to reinvest the money in new loans and thus allow your investment to grow further over time. When you want to access the money, you simply choose to have them paid out.