How to properly raise money for old age?
Some people do not like to think about the future, at least not in the long run. When it comes to retirement and the standard of living in old age, many have no idea how they will be, but others rely on state-funded pensions to cover all their needs. But the outlook is far from encouraging – looking at how pensioners currently live and looking at statistics, it is clear that some people in the country will have very little income. Estimates indicate that the pension paid by the state will be around 40% – 50% of the current salary. It is up to everyone to determine whether it will be possible to survive.
It should also be borne in mind that young people are much more likely to increase their income as well as to deal with unexpected situations, such as consumer credit , but with an age limit, which is unlikely to be relied upon in old age. However, due to these less than gratifying facts, more and more people are raising their retirement issues by making contributions to the 3rd pension pillar and looking for other ways to make old age financially secure.
Here are some tips to keep in mind if you too want to save for old age.
Contributions to the 3rd pillar pension
3rd pillar pension is a long-term deposit offered by banks and other institutions. The deposited funds are invested in the stock markets, thus making a profit. It is paid to the person in the form of interest. The amount of interest depends on several factors – the terms of the contract, the stock market situation and the economic situation in the country. It should also be noted that the State provides tax relief on contributions paid.
At the moment you can claim 20% of your contributions when you submit your annual income statement – provided that your contribution does not exceed 10% of your income. One of the easiest ways to keep in mind your regular deposit is to set up an automatic payment through online banking.
In order to maximize your contributions, it is important to find the most profitable service provider that offers the best return on your investment.
The faster you start, the more you paint!
For some, it may seem that there is still no place to rush into old age and with contributions. However, keep in mind – the sooner you start accumulating, the higher your savings will be. So don’t postpone it – this is really the time to start!
Looking for ways to save
One of the most commonly heard excuses for not making contributions to the 3rd pension pillar is the lack of funds. First of all, however, the amount of the contributions does not necessarily have to be high – even small but regular contributions will make a significant contribution in the future. Second, it is sometimes worthwhile to look at your current spending habits and think about how abandoning some of the mundane things, like a cup of coffee at a gas station, can positively affect your savings balance.