2023-05-27 18:10:23
The new pension is just around the corner. On Tuesday, the Senate will vote for a reform of the pension system. This system entails some new uncertainties. How can you provide some extra pension to be on the safe side?
In the new pension, people will receive a personal pot in the coming years instead of part of the large pot of their pension fund. Pensions are increased in good investment years, but are also reduced more quickly when the stock market performs less.
All accrued pension will be transferred to the new pension system. 1500 billion euros is thus divided into millions of personal pots. “We don’t yet know exactly how that will work. And that leads to some question marks, especially among the over-45s,” says pension advisor Paul Verbeek of PensioenVizier.
In the old system, young people invested a little too much for their pension accrual and the elderly a little too little. As a result, people in their forties can no longer benefit from that second phase. “They have to be compensated for this, but we don’t know how that will happen. For this group, their future pension is therefore somewhat uncertain for the time being.”
Set aside money tax-friendly
With that uncertainty in mind, it can be useful to provide an extra pension pot, says Verbeek. Fortunately, the new pension plans also include an increase in the limit for building up a tax-friendly pension yourself. “Whereas before you did not have much room for deductible pension contributions after a good pension scheme through your employer, you will soon be able to set aside 8,000 to 10,000 euros per year in an extra tax-friendly way.”
Verbeek advises to look at annuity products. “They will give you a lot of flexibility later on. You can choose whether you invest a lot one year and little the next, because your children are going to college, for example. And when you retire you can arrange for your extra pension to be paid out in five instead of twenty For example, when you are in your late sixties you have extra financial room to travel, while you no longer have to when you are ninety.”
How much risk do you want to take with investing?
Your pension pot will be invested according to the so-called lifecycle principle, just as is done with an annuity. This means that investments are made with more risk for young people and less risk for the elderly. “When investing, it’s always about your investment horizon. When do you need the money? If you can spare it for a long time, you can take more risk,” says financial planner Anja van Zandbergen.
“At the age of 62, your pension fund will take little risk, because your retirement is close by. But with your extra pot you may be able to plan further ahead if you can spare the money for ten years. Then you can also invest a little more risky.” If you only have a short horizon, you can also choose to save, but then you may have to settle for less return. “Investing gives you more in the long term,” says Van Zandbergen.
Don’t put all your savings into a pension or mortgage
Do you want to deposit as much savings as possible into an annuity or invest it via a pension account? That can be inconvenient, says Verbeek. “That deposit is really for your pension, so you can’t just access it. So keep part of your money within reach through normal savings or investments.”
In the past, a mortgage repayment was sometimes seen as an investment for later. Especially when interest rates were much higher. “We always look at the mortgage when we make a financial plan, but an extra repayment is often not very attractive now. This is because many people have fixed their mortgage with a low interest rate,” says Van Zandbergen. “You put your money in bricks and you can’t pay for groceries after you retire.”
We are curious about your opinion on this article. Click here to leave your feedback in a short one-minute questionnaire.
1685213088
#put #extra #money #unsure #pension #Economy