Financial planning for retirees: how much pension is needed? Rule of thumb and tips

Financial planning for retirees: how much pension is needed? Rule of thumb and tips

As they age, pensioners have different needs that need to be financed. A rule of thumb helps you find out how much pension you need to live well. According to an article on the website fr.de, the rule of thumb is that pensioners receive around 80 percent of their net salary as a pension. However, this rule does not take into account all expenses that arise in old age. In order to maintain their standard of living, pensioners must make early provisions. An ETF savings plan for retirement provision or a Riester contract can help.

Based on this information, we can analyze that a possible impact of this rule of thumb on the market or the financial industry is that it encourages retirees to make financial provisions early. This may lead to increased demand for ETFs and Riester contracts, which could impact the financial industry.

In addition, according to financial experts at Sparkasse, retirees should consider five things to meet their financial needs in old age. These include rising healthcare costs, higher energy costs, the potential impact of a move, the cost of new hobbies and additional travel expenses.

Overall, this rule of thumb shows how important it is to think about financial security in old age early on. The earlier you start making financial provisions, the better you can enjoy your pension in old age. However, it is also important to note that the retirement age in Germany is gradually increasing, which may have an impact on the timing and amount of pensions.

However, according to a report by fr.de, it is important to note that the rule of thumb of 80 percent of net salary as a pension is only a rough estimate and does not take into account all individual needs and costs in old age.

Source: According to a report by www.fr.de