Planning to save for retirement is not just about looking ahead; it is about making sure you have the money you need to enjoy your later years. Knowing how much you need to save to ensure a comfortable and stress-free retirement is vital.
This guide will break down the basics of retirement planning and show you how the APS Personal Pension Plan can help you achieve your retirement goals. By the end of this guide, you will be equipped with the knowledge and strategies to effectively plan for your golden years, ensuring a smooth transition into retirement.
Why Should You Have a Retirement Plan?
Having a retirement plan is more than just a financial strategy; it is about ensuring a secure and happy future. When you retire, your regular income stops, but your expenses often do not. Without a solid plan, you might struggle financially when you should be enjoying life.
- Financial independence: a good retirement plan helps you stay financially independent. Relying only on state pensions may not be enough, so personal savings and pension plans are essential.
- Inflation impact: over time, the cost of living could easily increase due to inflation. What seems like a sufficient amount now might not hold the same value 20 years down the line. A retirement plan helps your savings grow and keep up with inflation.
- Lifestyle and leisure: retirement should be a time to relax and enjoy life. Whether it is traveling, hobbies, or spending time with family, having enough money allows you to do these things without worrying.
- Legacy planning: beyond securing your own future, a retirement plan can also be part of your legacy, providing financial assistance to your children, grandchildren, or charitable causes after you are gone.
- Longevity risk: people are living longer, so you need to make sure your savings last. A comprehensive retirement plan takes this into account so you do not run out of money.
How Much Should You Save for Retirement?
Determining how much to save for retirement depends on several factors, including your lifestyle expectations, anticipated expenses, and the age at which you plan to retire. Generally, financial advisors suggest aiming to replace 70% to 90% of your annual pre-retirement income through savings and pensions. To calculate your specific needs:
- Estimate retirement expenses: consider your current expenses and how they might change. For example, healthcare costs typically increase, while commuting costs may decrease.
- Consider inflation: the value of money decreases over time due to inflation. What €1 buys today will not be the same 30 years from now.
- Plan for longevity: people are living longer thanks to advances in healthcare. Ensure that your retirement savings do not run out too soon.
Why Choose APS Bank?
At APS Bank, we know how important it is to plan for a secure and enjoyable retirement. Here is how we can help you to save for retirement:
- Tax benefits: get a 25% tax rebate on your annual contributions, up to €750 per year.
- Regular contributions: systematically save for your retirement by making regular contributions to your personal pension plan, ensuring that you build a substantial nest egg over time.
- Flexible investment strategies: choose from a range of investment strategies that match your risk tolerance and retirement goals.
- Pension options: decide how you wish to receive your pension—either as a tax-free lump sum combined with an income or as a regular income.
- Online access: review your pension plan online, allowing you to stay informed.
Get Started with APS Bank
With APS Bank, our commitment extends beyond offering financial products; we provide expert advice to help you navigate your retirement planning confidently. Ready to take control of your retirement days? Reach out to our team and book your appointment by filling in the form below. Our expert advisors give you the guidance you need to start planning for your golden years and securing a bright future.
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Approved and Issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The APS Personal Pension Plan is licensed and regulated as a personal retirement scheme by the Malta Financial Services Authority in terms of the Retirement Pensions Act (Chapter 514 of the Laws of Malta). This advert has been approved and prepared by Praxis PES Malta Ltd. (as the retirement scheme administrator) and APS Bank plc (as distributor of the scheme). Terms and conditions apply and are available on apsbank.com.mt/terms-and-conditions.
