Even if your retirement age is still far away, you should spend a moment thinking about it right now.
Consider what kind of a life you want to lead when retired. What will the gradual increase of retirement age mean for you? What will happen, if your working capacity or career does not last until your planned retirement age?
A major overhaul of the pension system is under way in Finland, and it will inevitably affect the retirement age and the amount of the future pension of all persons of working age. Your statutory pension may be as little as less than half of your current earnings.
You can prepare for the future by accumulating your own savings, for example as follows:
- Complement your statutory pension and ensure a comfortable standard of living for your retirement.
- Retire at the same time as your spouse, for example.
- Use your savings for everything you had no time for during your working life, such as hobbies, travel, etc.
- Prepare for larger housing-related costs, such as a pipeline renovation.
- Acquire health care and medical care services from, for example, private service providers when necessary.
By saving regularly, you can complement your statutory pension and affect your income during the years after your career. If you start at under thirty years of age, accumulating a comfortable extra pension requires only saving a few tens of euros each month. If you start just ten years later, you must clearly increase the saved sum in order to achieve your goal.
It is entirely realistic to prepare for using your savings for 20 to 30 years. In the case of a long period of saving, you should also pay attention to the yield of the savings.
Saver's funds and savings and investment bonds are very suitable investment vehicles for a pension saver. Savings and investment bonds are an effortless way to invest in varying themes.
Ask more about the different alternatives from your own OP bank.