One of the biggest challenges for developed countries in the long run is the issue of pensions. The average age is getting higher and the number of active workers is not growing at the same rate as pensioners, indeed.
The question arose years ago: how long can the current pension system be maintained? This has long been speculated, but without knowing the exact answer, any form of retirement savings is a better decision than guessing. There are several ways to make your retirement financially safer: we’ve explored which savings options you might want to choose in 2019.
What are the options available if you are interested in retirement savings?
A common feature of all three forms is that the state supports it with a 20 percent tax refund for retirement. In the case of a tax credit for retirement, we pay back the personal income tax already paid directly to our retirement savings, equal to 20 percent of the savings tax paid in that year.
It is no accident that the state is supporting us to add to the future state pension ourselves: unfortunately, the pension system does not appear to be sustainable in its current form.
It is worth studying each form of savings thoroughly, as they may have different cost structures and structures. So one may be more expensive, the other cheaper, but they agree that their use is contractually tied to retirement and retirement age. Which one is the right form of savings for you also depends a lot on how well you are financially successful, as all three retirement savings will accrue through securities and money market instruments. If you don’t know what’s the right tool for you, we’ll help you find your way!
May also vary depending on the portfolio you choose
Accordingly, the size of your return may also vary depending on the portfolio you choose. The voluntary pension fund does not require a high level of financial expertise, so anyone over the age of 16 can accept the terms and conditions and agree to pay the monthly membership fee. Your retirement payments will be handled by highly qualified professionals.
What you need to decide is if you choose this form of retirement savings in which portfolio you want to put your money in. To do this, you should clarify for yourself how much profit you want to make and how much risk you are willing or willing to take. As with the other two savings solutions, investing in more and more conservative assets and portfolios as you approach retirement age can be a good approach, as you don’t want to jeopardize your performance so far.
Here’s how to qualify for a state-owned volunteer pension fund
You can claim a tax credit of 20 percent up to a maximum of $ 50,000 each year on voluntary pension fund contributions. In order to get the most out of this discount, you need to deposit $ 750,000 into your pension account each year. Another benefit is that the fund does not deduct fees from the amount credited, it also increases your retirement income.
This could result in some employers completely dismantling their current benefit system and offering nothing else to employees. Alternatively, in 2019, employees will still be able to claim the gross amount of benefits, but since they will then have to tax it as income, they will have less in their pocket.