At what age do you start saving?
Who ever claimed that Belgians only started thinking about retirement saving late? According to statistics published by the financial sector a few years ago, 32 years is the average age at which our countrymen take out a pension savings plan. 40% of them do this before 30 years and 30% when they are between 30 and 40 years old. Only 10% of the population does this only after 50 years.
As you know, pension saving offers a tax benefit in the form of a tax reduction of 30% of the annual contribution. That contribution amounts to a maximum of € 940 per year (until 2018) . To be entitled to a tax reduction, you must of course have a taxable income. The earlier you start saving, the higher your accumulated capital. The same applies to the cumulated interest and your total tax savings over the entire term.
How do you save?
A few years ago, the website monargent.be calculated how much you should set aside for a monthly interest of 1,000 euros for 20 years (between 60 and 80 years) or for a pension capital of 200,000 euros. The savers were divided into 5 groups:
- Early birds (25 to 30 years old) must save 170 to 220 euros every month, an amount that they must index to take into account inflation.
- Pension-conscious young people (30 to 35 years) do not have to save more than 220 to 290 euros every month.
- Loafers at a more mature age (35 to 40 years) usually also receive a higher wage, they can save 290 to 390 euros per month.
- Even more mature decision makers (40 to 45 years) should save up to 550 euros per month.
- Finally, late bloomers (45 to 50 years) must set aside 814 to 1,358 euros each month. Which shows once again how important it is to start early.
If you are younger than 50 , you must think in the long term. Do you have a rather dynamic investor profile? Then choose a equity fund. If you prefer to keep it completely safe, choose an insurance policy with guaranteed capital and return.
Are you between 50 and 60 years old ? Your pension saving contract must run for at least a ten-year period to be entitled to a tax deduction. Avoid risky investments.
If you are 60 or older , it is too late for the tax benefit, but not for investing. So forget about saving your pension and choose one of the many non-taxed products. The return depends on your risk profile.