How to boost your pension?
2 min
Are you already planning for your retirement? With a few simple adjustments, you can maximise the impact of your savings. In addition to your statutory pension and supplementary pension, there are other ways to generate income in retirement.
Evaluate your current savings approach
Maximise the tax advantage of your pension savings
If you can save up to 1,050 euros a year, your pension savings will generate a 30% tax reduction, or 315 euros. Can you save more? If you can, choose the higher tax-exempt ceiling of 1,350 euros and the corresponding 25% tax reduction, or 337.50 euros. Every year, you must inform the bank that you have opted for the higher limit.
Are you approaching your 55th birthday? If so, there are several important considerations to keep in mind. Be sure to review the information regarding the one-off final tax, as it may impact your financial situation.
More information on the maximum amounts and your tax advantage.
Start by taking out a long-term savings plan or optimise your contract
With long-term savings, you also get a 30% tax reduction on your annual payments. You can combine this with pension savings for an even higher pension.
Do you already have a long-term savings contract, but haven't yet reached the maximum limit and can still save more? In that case, you can make additional payments or take out a new contract. Are you approaching your 55th birthday? There are a few things to keep in mind in this case.
Create a source of passive income
There are many ways to generate passive income. Unlike active income, which is earned by working, passive income allows you to earn money with little or no effort.
That doesn't mean you can sit back and do nothing, though. Passive income is the result of a past effort, such as making an investment. It's a path that can lead to greater financial freedom. In other words, by investing today, you're giving yourself the opportunity to earn extra money in retirement.
Invest your money
Investing gives you an opportunity to achieve a higher return than traditional savings and term deposit accounts. By investing your money in shares or bonds, you could potentially benefit from capital gains, interest and dividend distributions.
Invest in your passion
Are you passionate about art, wine, or something else? Why not invest in what you love? This is a long-term commitment, so be prepared to wait at least 10 years to see a return on your initial investment. However, the good news is that you can combine investing with enjoying your passion, making the wait worthwhile.
Real estate and rental income
Do you have an opportunity to invest in real estate? It's definitely worth considering. Rental income can provide you with a significant source of additional income when you retire.