Enjoying a good pension when we retire is an issue that nobody should disregard and that, in fact, obsesses many of those who now approach that ‘happy moment’ of their lives. Specifically, 81% of Spaniards say they are worried a lot or a lot about the future of public pensions, but only 28% have taken action on the matter and are saving for retirement, as reflected in the Good Finance and Savings Habits prepared by the GF Pension Institute.
In addition, many of these future pensioners dream of retiring from work life seven years earlier than what is generally established by law. However, the duties must be done much earlier and few can advance their retirement. The truth is that experts consider that the ideal age to start exercising as sparing ants with an eye on old age is around 34.4 years, but most do not get to the task until 8 or 10 years after. Maybe too late.
At present – according to the data provided by a recent study – only 29% of Spaniards acknowledge saving for retirement, while another 22% say that although they are not saving for retirement, it has intentions of doing so in the future. On the other hand, we can talk about an 8% that saves nothing but also does not figure among its future goals.
But what strategy are followed by those who start saving? Most of these savers choose to implement a pension plan (59%), while 29% resort to deposits. It is also possible to speak of a significant 17% that relies on company pension plans, another 16% that goes to investment funds and another 15% that makes real estate investments.
These workers with empty savings coffers have their own formulas so that their pensions can improve. Thus, they believe that people could be encouraged to save if wages are increased or if companies take a hand with pension plans. Tax reductions would also be welcome for those who save.
In addition, according to a study by Good Lender, our GDP would increase by 8.5% if we chose to implement a mixed pension model that combined the current distribution system with the development of a complementary capitalization scheme of the company.
But the possible benefits derived from an incentive of the companies’ pension plans would not end there because it would improve employment by 2.2% and the savings rate could grow by 23%. In short, it seems that the Government is already taking time to apply these measures, right?
Judging by the data compiled by the Good Lender, those people who pamper their health with the practice of sports and attend medical exams with some frequency are the most likely to save for old age.
Thus, these people hope that during their retirement years, health will accompany them and, of course, they do not want to go through economic tightness but rather enjoy some slack.
In fact, old age is no longer considered synonymous with physical ailments and decay, but a simple period of life that many want to face in the best of both physical and financial states. In this way, Spaniards with better health consider the need for financial planning a priority (61%). On the other hand, those whose health is worse are less aware of the importance of saving.
What is clear from certain studies is that Spain continues to think in the short term given that the majority of Spaniards do not notice the fact that time passes and that one day they will be charging a pension that is probably not at all what they dreamed . Specifically, in Spain we think very little about retirement as revealed by a report prepared by Good Finance that shows that our country is in the queue for financial planning prior to the retirement stage .
This lack of forecast causes, according to Sean Cole, CEO of Good Finance, that ‘many people find themselves in a situation where they will not have a sustainable financial condition because they have not been informed of the need to save to face this stage’ .
We must bear in mind that Spain, with an average of 83 years, is the second country with the highest life expectancy at birth among the countries of Organization for Economic Cooperation and Development (OECD). That is, after retiring, we have 21 more years to go. A lifetime where health and a good pension should accompany us equally. In short, it is time that we take very seriously the recommendations of the experts who advise us to save to face our golden age.