How to compensate for the drop in income linked to retirement? For this, it is better to have planned ahead.
When the time to say goodbye to the world of work comes (and even before), the question of one’s future standard of living arises. Pensions paid by the State and the supplementary fund do not make it possible to reach the same level as the last salary. At a minimum, retirees see their income drop by 20%. But the situation can be very different depending on careers and life paths. So, how can you live decently when you’re retired?
Each situation being different and specific to each person, there is no ready-made answer. However, if certain advice is applied throughout one’s professional life, it is possible to enjoy a comfortable retirement. This includes applying a particular rule.
If it is not easy to know how to start, some advise first of all to apply, as far as possible, the 15% rule: put 15% of your annual income in a booklet, each year. Attractive on paper, the practice is in reality more complex since it varies according to the salaries received by each person. An employee earning €1,500 per month will have more difficulty setting aside €225 every month compared to an executive earning double that, who, if he cannot save €450, should be able to transfer 5 to 10% to a savings account. .
€300 is the average amount you should try to save every month to ensure a comfortable retirement. If, during the first years, it may be difficult to extract as much money from your budget, professional development or various bonuses can make it possible to increase this monthly savings and reach this average. Taking into account 43 years of work, this allows you to have at your disposal a nice nest egg of €155,000. This allows you to supplement your pension by around €650 per month for 20 years. A mattress which can even be a little thicker thanks to the interest rates of the savings accounts in which the money is placed.
Naturally, this is just theory. The different salary levels do not all allow for this rigorous savings and the money put aside is also used to finance the children’s studies, go on vacation or face unforeseen circumstances. Whatever the case, it is better to plan ahead as early as possible and save as soon as the opportunity presents itself.