What mistakes you should avoid when planning your retirement
Retirement is one of the problems that most concern the Spanish. Insecurity about how pensions will be in the future is leading to more and more people starting to plan their retirement.
But it is as important to think about this important moment as it is to do it correctly without committing a series of errors that are still very common:
Do not think that the public pension is enough to cover all your expenses
Although the current reality is leading to many who supplement their pension with products such as a retirement plan, most still do not. The public pension may not be enough not only because it can be reduced, but mainly because we will enjoy a higher quality of life for a longer time.
Thanks to the capital or income that we can obtain with a forecast product, we can obtain that supplement that will be increasingly important and valued.
Leave the amounts that we will need and receive at random
There may be many years to retire, we will change jobs, the price varied … but even so it is important that we know, in the current circumstances, what our public pension will be. Getting it is simple thanks to the Autocalculus program of the retirement pension that we can access from the Social Security website.
This is the starting point so that compared to what we believe will be our future needs or projects, we allocate parts of our present income to complement our retirement pension.
Think about our retirement when we have a few years left
Although the Spanish saying says that it is never too late if the happiness is good, the truth is that acting in this way in saving for retirement has important disadvantages.
The first is that the contributions that we must devote to obtain that income or complementary capital will be greater.
The second point in the case of products such as a retirement plan is if we exceed the 8,000 euros per year (or 30% of our income for work or professional activities), we can lose the tax benefits of the contributions.
And the third, even more important, is in the benefits that we get for these contributions. These accumulate and in turn generate other additional interests, so that saving in the long term not only allows us to do it more comfortably, contributing less and benefiting from its taxation, it also allows us to earn more.
Think of your saving for retirement as something alive
Many of the changes in your life, especially the economic, influence when planning retirement. Therefore, adapt the investment to your personal circumstances and the time that remains for your retirement.
So you can, for example, change the contributions when economic circumstances force you to reduce these savings and otherwise, accelerate them if you need a capital or higher income.