The retirement can therefore be understood as a financial reward after so many years of active service, which takes the form of a monthly income that is received based on the number of years worked and amount of taxation that were paid (tax).
Pensions are of two types, contributory and non-contributory:
• Contributory pensions are those based on the amount of money managed to accumulate the regular payment of contributions or system specifically use certain workers
• Non-contributory pensions are those who are granted a monthly amount for life, which is less common than occupational pension, but has the characteristic of being granted in cases where the amount of money accumulated was not enough and have few resources
1. Retirement depends on oneself
There is no chance to blame someone else for a lower retirement, because it depends essentially on the basis of the worker's effort could do to save money each month while in active employment status.
The money saved is invested to achieve capital growth, so that is another factor that must be evaluated to care for the future of retirement. Oversee what is done with the money that is contributed monthly while working is part of the force responsible for anyone who wants to secure their old age.
2. Choose how to save
Retirement will be the salary that you will live when you do not have tickets for formal work product, hence the need to calculate how much you want to have in the future with time, thus preventing any accidental problem for lack of diligence. When ready to invest pension savings, it is noted how the portfolio is to invest in the stock, bonds and other types of alternative financial profitability.
Accumulating money for retirement is not a mechanical act, we must make a saving strategy to associate with a type of investment or investment product as determined by the time goes by and the changing investor profile.
3. Saving Time
Saving for retirement is not just a couple of years, is part of a strategy of life should be started as soon as possible, hopefully as soon as entering working life. To focus on this subject well, think that the expectation of obtaining a fixed rate at retirement will always be maintained, therefore more time that passes in not less, should be saving more then to help reach that expectation or risk they will have to incur to make investment worthwhile effort.
4. The savings does not end with retirement
Many people mistakenly believe that when they retire, stop saving automatically, but it is not. With the increased longevity of seniors, the accumulated amounts usually do not give sufficient to fund the extended life of people reaching 75 years (if they retire at 65), it is desirable to maintain retirement of the amount provided by investing, though under a program for lower risk.
5. Good financial advice
Where the advice is appropriate and complete, you can make decisions that optimize the level of earnings of those investments to preparing for retirement early. Try to get advice for your personal bankers, or financial experts.
Happy investing :)
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