No one will take care of a pension better than the person himself. Often, social security does not even allow to survive from month to month. Therefore, you must definitely think about the future now, which is not so simple. The question of how to save up for retirement on my own is asked by many people.
Why do you need to do this yourself?
The amounts that each person pays monthly for social security from his salary are not really any insurance premiums. This is a large tax from which pensions for current retirees are financed. Thus, no funds that are deducted from wages for social security are not set against the future pension of a particular person.
Probably, everyone knows that part of his money goes to the Pension Fund of the Russian Federation, the funds of which are today mainly transferred to extra-budgetary funds. According to some, politicians look at the remaining savings accumulated in the funds, so it can be expected that a person will not receive a dime from his contributions.
There are fewer and fewer people working in private business, so fewer people are paying social security contributions. This trend leads to the fact that the classic financial pyramid called pension contributions will collapse sooner or later. This will happen when politicians finally declare its insolvency. Of course, it will not look like the president will come out and say that the PF is bankrupt. No, no and NO. He will come out and say that today, fair pensions for everyone are 1,000 rubles (except for politicians, officials and other influential groups).
So far, politicians are trying to extend the agony of pension provision by introducing innovations and raising taxes, including contributions to the social insurance administration, through the artificial suppression of average wages in the Russian Federation and hidden inflation. For these reasons, the question of how to save for retirement yourself is important to ask.
How much should you save to have a decent pension?
Saving yourself is not an easy task. Most people do not know how to save money, and even those who can, can save too small amounts. It is difficult to save in spite of high taxes, prices that are disproportionate to earnings. The fact that prices are rising and unsurprising is still high taxation, for example, more than 53% of taxes in a liter of gasoline (VAT, fuel surcharges, excise tax). The situation is slightly better with other products and services.
Before you save up for retirement in Russia, it is worth deciding how much you need to regularly save from your salary.
If you save 10% of your salary, and save on bank deposits and savings accounts, you get the following picture. Over 35 years of life under this regime, savings will amount to 2.5% per year. The inflation rate in this period will be 2%.
As the diagram shows, having retired at the age of 65, such a person will live 5 times poorer than he wanted. This means that he will live in total poverty, because the amount received is hardly enough for him to eat. To live in retirement the way you want, you have to save 50-55%, which is unrealistic with the current taxation.
The only salvation for such a person is work to a very old age, at least 2-3 days a week, which has its advantages. Scientific studies show that people who work after they reach retirement age are less prone to dementia and Alzheimer's, and their mental health is statistically better due to communication with other people.
A resourceful Russian will always come up with something. He could, for example, eventually emigrate to France or Germany, where social benefits would be 3-4 times higher than in Russia.
To understand how much you need to save for retirement, you should consider the example of another person, but with a completely different attitude to life and work. On retirement, he is going to save 10% of his salary.
His grandparents lived a long time, up to 80-90 years old, and he predicts that he will live 95 years, especially if he takes care of himself and invests in his health. He is an ambitious and hardworking person, so you can safely accept that his salary will grow by 3% per year, although this is a very optimistic assumption. He cares about his savings - he always uses the best bank deposits, and invests part of his funds. It can be assumed that he will be able to increase his savings by 3% per annum. The inflation rate during the saving period will be 2%. In old age, he can sell his apartment. Instead, she will buy housing 35% less in area.
In order to live well, as he wants, he will have to save 35% of his salary in life. He will marry and think about the child, which will be great spiritual and financial support for him in retirement. Such a person, as can be expected, would be nice to live in retirement and not particularly worry. His character indicates that he has a chance of great success in his career and, consequently, greater earnings than at present. He will wonder in time how to save up for retirement.
How to postpone
First of all, you need to rinse your face with cold water and answer yourself at what level you want to live in retirement. Then you should calculate how much capital you need to have in adulthood in order to live peacefully in retirement. The last element is the calculation of how much you need to constantly save in order to ensure a sufficient amount.
Regular and safe
Those who are wondering how much money they need to save for retirement should start saving regularly and safely using the best bank deposits and savings accounts. If a person is not entrepreneurial, investments are more risky for him. It is optimal that they do not exceed 20% of your accumulated capital. In this case, it will take 25 years to live in such a regime.
Create high value assets
If a person is entrepreneurial, the best way to retire is to create high-value assets - for example, a company that can partially be cashed out or receive passive income from retirement from dividends on the board of directors.
If a person has great talent and passion, for example, he sings and composes perfectly, you can provide yourself with a passive income. This is a great answer to the question of how to save up for retirement. Passive income can be patents or one-time sales of their discoveries.
Never invest in what is not clear
It is best to avoid investing in assets if it is not clear how to assess the risks and what the profit depends on. Of course, it is known that many invest in theoretically risky assets, for example, in shares of American or German companies. For decades, American innovation companies will make big profits around the world, so you should use the moment of growth in their value.
Pay low taxes
If it is legally possible to pay less taxes, you must do everything possible to make it that way. Money from politicians and officials will never be returned. They will not go to retire a specific person, but to current pensioners.
Do not be afraid of risk in youth
If a person is young, ambitious and insanely hardworking, do not be afraid of risk. The overwhelming majority of people get high incomes are smart, enterprising. It may even be possible to build your own business, bringing tangible income. Perhaps a sports career is one in which a person will achieve great success. This is another answer to the question of how to save up for retirement.
Work as long as possible
Work is necessary until old age, not necessarily in full time. Work counteracts the development of dementia, which is scientifically proven. Retirement between the ages of 60-65 is suicide for the brain.
Take care of your body
Those who are thinking about how much money they need to save for retirement should think about this side of the issue. Large amounts in the future can take away health problems. You need to take care of yourself - eat healthy food and exercise regularly. It is best to start a family because it will be a great support in old age.
What should be a good retirement plan?
The safety of pension savings comes first. A few years of savings is a very long period in which a lot of good and bad things can happen, not only in the life of a particular person, but also in the situation in financial markets, which will necessarily affect the state of a financial institution chosen by a person. And those who wondered how much points should be accumulated for retirement should keep this in mind.
For this reason, flexibility must be foreseen in the plan. Firstly, it should be in terms of deposit placement. Specialists recommend putting aside at least 10% of net income. The amount of funds to accumulate will change during the period of savings. It is necessary to freely change the amounts received to the accounts of those who have thought how to save for retirement. It is worthwhile to prepare in advance for a situation in which it will not be possible to save the necessary amount.
Secondly, the plan must take into account the very changing situation in the financial markets. There are periods in which a person achieves results in the stock markets, and in other periods the highest incomes are insufficient. The period remaining until retirement will also change. It also affects the way you save. This factor should also be considered in the retirement plan.
Best Savings
What should be the ideal way to save? Bank deposit yields rarely exceed inflation, and the plan requires profitability at the level of average wage growth, which is several percent higher than inflation. The possibility of achieving such a return on a bank deposit is very low.
Usually, a contract is concluded with a bank for arbitrarily selected amounts, but the bank will offer minimal flexibility when it comes to the method of concluding a contract. This will be either a fixed interest rate agreement, which is more beneficial if inflation will fall, or with a variable, which is better suited to the inflation growth scenario.
The deposit agreement is concluded for a specified period. By breaking the contract ahead of time, a person loses interest. If you save money on bank deposits every month, this will not be a very convenient form of saving for retirement.
The next answer to the question of how much you need to save for retirement should be considered from the point of view of using open investment funds. These are separate companies whose participants do not bear the risk of bankruptcy, but the person carries certain investment risks.
Long-term return on investment in equity funds can significantly exceed the growth rate of salaries.
About 8% of Russians invest in real estate. Despite the fact that construction projects are considered a very safe industry for investment, here the risks are primarily associated with the developer. A person may be afraid that the developer will not fulfill the contract and the investor will buy, for example, mortgaged property. The long-term return on investment in real estate can be high, even higher than the growth rate of wages. There is a relatively wide selection in the investment object. The sale period can last several months. Due to the very high cost of real estate, only persons who have already accumulated a sufficiently large amount of capital intended to finance a pension can count on this type of plan.
The above analysis of the most popular forms of saving clearly indicates that the best form of investment fund.
The terms of our private pension plan should be organized in such a way that it is possible to constantly monitor the result, and there should also be an option to refuse the services of the company with zero losses if it turns out that the plan drawn up by the company does not meet expectations.
In life, very different situations are possible, there is a risk of a big financial crisis. A private retirement plan should also be evaluated for ways to cope with such difficult life moments. In such a situation, a person should not bear any expenses in favor of the financial organization to which he charged the money.
How to find out
Despite the unreliability of traditional ways to save money for old age, many people wonder how to accumulate points for retirement. A funded part is formed at the moment when a person receives SNILS. 6% always from the salary of a Russian is transferred to the PF account. At the same time, he can transfer part of it to the personal account. Savings are accumulated in the account, and after that they begin to pay in the form of a pension. Those who wondered how to find out how much pensions have accumulated should contact the Pension Fund. Under the new system, a person accumulates retirement points. And if he wondered how to find out the accumulated pension, he can go to the PFR website. You can withdraw money from this account only after reaching a certain age. And those who ask how to withdraw the accumulated pension should know this. There are no ways to cash out the accumulated amounts ahead of schedule. And this applies to both public and private pension funds in absolutely equal measure.
The standard approach is to accumulate large amounts by adulthood, and then acquire a pension in an insurance company. For example, if a person owns his house, you can sell it. Half will go to new housing, and the second part to retire. You can rent property. The next option is to gradually invest in order to form a future pension.