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The calculation is simple: Much of what we do or plan in life has financial consequences. When we start a new job or reduce our workload, start a family or plan to retire early: Every time we have to recalculate our money and adjust the budget to changing circumstances. “Wealth planning and saving accompanies us throughout our lives,” says Andrea Klein of the Center for Financial Planning in Raiffeisen Switzerland. “We’d better start breaking our lives into stages as early as possible. We create a new financial plan with appropriate measures for each stage of life.»
Laura and Marco: the pitfalls of family planning
For many, family planning is one of the most important of these phases of life. Just like for our exemplary couple, Laura and Marco. The two have been in a relationship for three years and now want children of their own. It’s a fundamental change that brings with it a lot of expectations – but also a huge financial responsibility. As Andrea Klein emphasizes, this stage of life needs to be planned especially well. “First of all, there are a few questions that need to be clarified regarding the family model: do we stay together or do we get married? Are we both going to keep working? How do we organize childcare? All these decisions have consequences for the budget and pensions.”
If Laura plans to take a few years off work to care for the children, this will have repercussions: On the one hand, it may be difficult to return to work later despite a good education, on the other hand, her pension assets will shrink as a result of a break from work. “Although the reduced workload may seem financially sufficient today, this may have serious consequences later on, as all or most of the contributions have been missing for years.”
The pension expert recommends talking very openly about these questions and the financial situation of both partners from the very beginning. “It happens that one person has no clear idea of the other’s finances. Therefore, it is best for Laura and Marco to create a detailed layout and play around with the different variants and their respective risks. » The possibility of separation or divorce should also be included – or something could happen to one of the partners. “It doesn’t sound romantic at this stage,” says Klein. “But if you know what to expect, you’re up for anything. An impending retirement gap is noticed – or possible fateful blows are covered by the appropriate insurance.»
Once the family model is chosen, Laura and Marco can do the financial planning. This is ideally done in three steps (see box). Simply put, Andrea Klein talks about three “cassettes”: one for short- and medium-term expenditures for the next ten years, one for iron reserves, and one for long-term expenditures. The latter also includes the provision; This safe, which is also very important, remains in the background when you look at the expenses incurred by the child. “One should not forget oneself: what does our life look like when our child is financially independent? What about financially in terms of retirement?”
Together with the investment advisor, Laura and Marco define the appropriate investment strategy. They both took the most important step before starting a family: opening a 3a account. Even smaller, regular payments to column 3 have a big impact in the long run; even more so if well invested. An example of a simple calculation (see chart): Anyone who has invested 50 francs per month in an equity strategy in a pension fund for over 40 years will then have access to retirement assets of around 77,000 francs. If you put the same amount into a 3a account, you will get a final net worth of CHF 30,000 – about CHF 47,000 less. As Andrea Klein knows, many people are not aware of this and are not informed enough. «Unfortunately, subjects such as retirement and investment are completely missing in our education system. It would be very important!”
Fly: Your retirement strategy determines how your retirement assets will evolve over the years. Use the Raiffeisen retirement calculator to calculate for yourself what difference it will make if you “save” your retirement assets in a retirement account or invest them in a retirement fund.
Barbara: Is it too late for early retirement?
These are the basics that one has to do one or two stages of life and later on. Like Barbara, for example. The children have separated and the woman in her mid-fifties is now considering retirement. That too may come before age 65: According to the Raiffeisen Retirement Barometer 2022, more than 30 percent of respondents want to retire earlier. But honestly, how realistic is that? “You have to be aware that early retirement is expensive. If you stop at 60, you will have no income for five years and the AHV only comes in at 65 », notes welfare expert Andrea Klein. “You get a pension from a pension fund, but it’s significantly lower because there’s no relevant premium year.” In the case of early retirement at age 60, the basic rule is about 20 percent of the capital or 30 percent of the pension is missing. Klein: “You have to be able to afford it first.”
That’s why it’s important for Barbara and anyone else with similar aspirations to get the planning done at an early stage. There are also a few questions to be answered here: How big will my assets be at the end of the working day? Is it enough to maintain the desired standard of living? Or do I have to close the retirement gaps?
In any case, it’s important to know the post-retirement budget so you can plan your retirement assets. But many are unclear about what they will need in the future. “Overall, the majority of Swiss people pay little attention to their own retirement. Significant time is often lost,” says Klein. He recommends going through the issue at least ten years before you plan to leave. “Those who deal with it early can set the course and save taxes at the same time.” (See box / step 2 – close retirement gaps)
But one question remains: How long do retirement assets actually have to last? Nobody knows how old he will be. According to Klein, some providers would calculate the mortality table. In this case, the pension plan is made according to the expected age. According to the Swiss mortality table, in the case of Barbara, 52, this would be 88. But Andrea Klein says: “I prefer to calculate comfortably and always calculate at 30, from my retirement age. To show in most cases: entities are sufficient. It gives a sense of security.”
Source : Blick
I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.
