W e have often said “If I only knew what I know today”, well, in the case of pensions you don’t need to know more than what you can see to foresee the future.
According to the European Commission report, in the next decade the gap between work and retirement income of the Portuguese will reveal that pensioners will have to live with half of their salary. This report shows well the sustainability of the national pension systems and clearly translates that the replacement rate (between the last salary and retirement) in 2040 will fall to 54.5% – and in 2045 it will be less than half (48.2%).
From the outset, there are two fundamental ideas to retain about the future of your pension: it will be smaller and insufficient to replace your current income. It is therefore decisive that you make a plan to complement what will happen in the future and thus be able to ensure that your income will not suffer such a drastic cut.
To constitute a gradual saving, it is enough to choose a plan and to program monthly reinforcements according to the percentage of saving that is comfortable for you. This small piggy bank acquires another dimension when at the end of time it manages to combine the accumulation effect with that of capitalisation and tax efficiency.
It is this effect that you can see portrayed in the annual study conducted by HSBC (The future of retirement survey – HSBC Insurance Holdings Limited London) where the universe of people who during their working life had a plan reached retirement age with more than double the available capital (+245%).
Don’t put off any longer the plan that can decide the quality of your future.