Today, things are evolving with immense speed. We are not only living longer, healthier, and more active lives, but we can often now decide when, how, and even if, we retire.
An important note to remember is that it is never too early to start thinking about retirement planning.
One of the most crucial things you can do is begin saving for your future. Though, worryingly, there are many of us who do not have a clear plan for what we want to get out of our retirement, and there are even more of us who may underestimate how much money is needed.
Questions for you
A useful start is to ask yourself these questions:
- How much money do I want to have saved by retirement?
- What kind of lifestyle do I want in retirement?
- What are my sources of income in retirement?
Essentially, the sooner you start saving and investing, the more time your money has to grow.
When you near retirement, the useful questions may change as you now have a clearer idea of what you have and what you will be able to afford.
You could now ask yourself:
- How long will my money last?
- Can I maintain my current lifestyle?
- Do I stay invested or do I draw an income?
As you may have noticed, it cannot be stated enough that the key to an enjoyable retirement is to start as soon as possible. This can save you the panic of being in a situation where you are not prepared for retirement.
Your Swiss pension
In Switzerland, your pension is structured in Pillars. There is the 1st Pillar, which is intended to cover basic needs, the 2nd Pillar, which is based on the contributions you make during your working life, and the 3rd Pillar, this being your private pension. The first 2 Pillars are compulsory, whilst the 3rd is not.
It is unlikely that the Pillar 1 and 2 pensions will provide sufficient income in retirement to support the lifestyle you envisage, and so the Pillar 3 pension helps to bridge that gap.
Unfortunately, there is no crystal ball for any of us to look ahead and know what is going to happen during our retirement. So, it is increasingly important to explore the different advantages offered by having an effective retirement strategy in place.
Never too late
There should never be an occasion where you think that it is ‘too late’ to begin saving for your pension. Even if you only have a small amount of money to put away each month, it will add up over time. In addition, with the right plans in place, you can make your money go further than you may initially think.
Investment is important
Investing is an effective way to put your money to work and provides you the opportunity to build your wealth. How to invest, and where to invest, can be slightly more complicated and has a lot to do with your personal circumstances and risk appetite.
Understanding the type of investor that you are is one of the first steps toward understanding what sort of investment approach is best for you.
We are here to help
Whether you are looking to save as much as possible to build up your pension pot, or you want your money to stretch as far as possible in retirement, it makes sense to have an efficient strategy in place. Having a solid retirement plan is vital for a worry-free future.
We can help you look at the right options for your retirement plans, investment strategies and more, tailored to your individual circumstances and objectives. To find out more and discuss your own situation, get in touch with us today.