4 tips to prepare yourself for your retirement
According to the CPB, young people would do well to start working on their pensions themselves. Low interest rates continue to be a huge problem for pension funds, and young people will suffer from that in the long term. How are you preparing for your retirement? Today we will share 4 tips with you.
Retiring
You may not want to think about it now, but you too are going to retire someday. In most cases, you build up a pension through your employer. However, this is not always the case, so always check this carefully with your employer. If you want to be able to continue to live the same lifestyle after you retire, it is wise to take some steps of your own, too. With your pension benefit and your state pension benefit alone, it will probably become a lot more difficult. That is why today, we are giving you 4 tips to build your own capital for your retirement.
1. Saving
Of course, you can already start saving for your retirement today. If you put away a fixed amount every months, this money will accumulate over time and you will have a nice extra after you turn 67. Or perhaps 68. Safe and clear.
Do realise that saving ultimately costs you money. This is due to inflation and the fact that the savings interest rates are 0%. In 2019, inflation was 2.6%, which means your money lost 2.6% of its value. So if you have 40 more years to go, your money will only become worth less and less.
2. Annuity policy
Another way to build capital for your retirement is to take out an annuity insurance. You pay your insurer a premium every months, and they provide an indication of the expected return. Then, when you retire, they pay you a monthly amount. Just as with your other pension benefits. Safe and clear, but not very flexible.
Do take any additional costs into account when taking out this policy. These can run up significantly.
3. Managed investment
There are a number of banks who offer a special pension product in combination with managed investment. In most cases, you put in the same amount every month and the bank invests it for you. You can usually control the risk profile, but not the specific stocks, bonds and ETFs. The money you put in cannot be freely withdrawn. You can only start using this money again after you retire.
4. Trading for yourself
You can also take full control and start trading for yourself. You determine how much you invest, what risk you take, which markets you trade in and when you want to withdraw your money. When you invest for yourself, you are in full control.
Let’s say you start trading for your retirement with the BOTS app. You can start with as little as €50. Getting started is easy. In the app, you check which bots are successful, what risk you are willing to take and off you go. You determine how much you invest and when, and you can try out your returns in the demo first.
Bots are automatic trading strategies that trade for you based on algorithms, artificial intelligence and machine learning. Because they are bots, they never sleep and are not bothered by emotions when there are fluctuations in the stock market. Convenient.
Previously, these automated trading strategies were only available to the richest 3% of the global population. But now they are available to you, too. With the BOTS app.
This way, you are in full control of your pension plan. And you can retire with peace of mind. And who knows, perhaps even before you turn 67!
Trading is for everyone
Everyone should be able to invest. And now they can. With BOTS. Together, we are committed to making the world of trading fairer and more transparent. Interested, but your question hasn’t been answered yet? Then please have a look at the FAQs on our site. Or contact us, we will be happy to explain it to you in person.
The BOTS app is now live
Download the BOTS app on your mobile phone today! For Android click here, for Apple click here.
There is no such thing as risk-free investment. It is possible to lose (part of) your stakes.
