Investing before retirement: How retirees can secure their future!

Investing before retirement: How retirees can secure their future!

In recent years, more and more pensioners in Germany have realized that their income in retirement is often not enough. Financial concerns are increasing, prompting experts to emphasize the need for action. Pensioners are not only getting older, but also poorer, as many have not adequately provided for their retirement. Loud Usinger Anzeiger German pensioners between the ages of 63 and 70 are increasingly having to restrict themselves because they are financially worse off than expected.

A survey by HDI Germany shows that 50% of those surveyed had expected a higher pension, but 64% of pensioners relied exclusively on the statutory pension without making private provisions. This poor planning becomes clear given that costs in retirement are on average 70 to 90% higher than during working life. Over the last decade, rental prices have increased by 104%, and inflation and unforeseen costs such as medical and nursing care are quickly depleting many retirees' savings.

The importance of retirement planning

A study has shown that many people underestimate their life expectancy. Seniors can expect to live 20 to 40 years after retirement. The average life expectancy in Germany is 78.2 years for men and 83.0 years for women. This has important implications for financial planning in old age, as a reduced life expectancy often leads to fewer reserves.

In order to meet these financial challenges, experts recommend investing in the stock market even in old age. Investing in ETFs, such as the MSCI World or the FTSE All-World, is considered a sensible option to diversify the portfolio despite advanced age and to keep the risk of a total loss low. How Wealth center As explained, stocks are particularly useful for investors with a long-term investment horizon of ten years or more.

Strategic investment opportunities

Investors considering late-stage investments should not be deterred by fears of losses and price fluctuations in retirement. It is advisable to think about personal financial goals, whether early retirement or the intention to pass on wealth. Independent advice from financial experts is recommended to effectively achieve appropriate financial goals. An example calculation shows that, with an investment amount of 10,000 euros and a monthly savings rate of 200 euros with an assumed annual return of 7%, a portfolio value of around 90,000 euros can be achieved at the age of 75 - before inflation and taxes are deducted.

The need for reserves in old age is becoming increasingly clear. Pensioners should therefore actively deal with their finances. Investing in the stock market is not only important during the acquisition phase, but can also offer decisive advantages in retirement.