Whether it is because retirement age is getting older and older, because you are not sure you have all the quarters necessary for a full retirement or because with your current salary what you will receive will not be enough, saving is the best way to ensure a peaceful retirement.
The sooner you start saving for retirement, the easier it will be to build up a comfortable income for your later years.
To help you get started as quickly as possible, and without diving into financial calculations that are as complex as they are boring, we have summarized the procedure to follow in a few simple steps.
1. Decide at what age you will retire
Currently the minimum retirement age in France is 60 and from 2017 it will be 62. Nothing obliges you to follow the government’s plans but what you need to know This means that the more you lower your retirement age, the greater your savings effort will be. due to the number of years to be taken into account. Which brings us to the next step.
2. Calculate how many years you will need to take into account
This is the maximum number of years you will have left to live after retiring. Based on the life expectancy of your parents and grandparents, you could have a fairly precise idea. This will allow you to avoid finding yourself in a precarious financial state or saving more than necessary.
3. Estimate your expenses as a retiree
It is very likely that your expenses will drop when you retire. So you can simply assume that you will need 75% to 80% of your current income to survive.
4. Take into account your acquired knowledge
Whether it is the quarters that you have validated with the pension plan or the money that you have already put aside, it is preferable to have a general idea of what you have to be able to subtract it from the amount necessary to save for your retirement.
A simulator such as that of the savings bank will make your life easier by giving you an estimate of the amounts that the state will pay you according to your current profile.
5. Calculate what you need to save
In the end you can do a simple calculation of what you need to save for your retirement by multiplying your expenses over a year by the number of years you want to take into account then subtracting your assets from the result.