You are retired once your professional activity comes to an end. However, you must continue to lead a quiet existence. It must be recognized that the pension will not be enough to finance the serene way of life to which you aspire. In doing so, it is important to prepare for financial retirement. Here are some tips for creating a financial cushion that will allow you to maintain your lifestyle even when inactive on the professional level.
Investing in real estate before retiring
Buying real estate during your working life is a means that leads you to limit your housing expenses once you retire. After repaying your mortgage, you can enjoy your home without owing anything more. By owning your home, you will not be forced to leave the home because of a drop in income.
By owning your own property, you can qualify for additional income by considering resale. The price of your property thus allows you to finance a non-negligible part of retirement. It’s up to you to think about the rental investment which opens the doors to various real estate tax exemptions. However, do not forget the charges that may accompany the property. These include maintenance work or condominium fees.
An investment in a company for a peaceful retirement
The physical stone is not the only one you can count on. To spend a nice retirement, consider the paper stone. Which consists of buying shares in SCPIs or Sociétés Civiles de Placement Immobilier. This alternative gives you the opportunity to access high returns, sometimes reaching 5%. Like OPCIs, SCPIs are associated with significant remuneration. However, the latter is a function of the valued shares and the dividends that the company distributes.
The paper stone has another undeniable advantage. Be aware that OPCIs and SCPIs can be part of a life insurance contract. This allows you to benefit from profitable taxation in terms of inheritance.
Employee savings and banking products
To live a retirement far from any money problem, find out about employee savings. This alternative remains one of the most recommended. Indeed, when you pay profit-sharing bonuses and participate in a company savings plan, you have the power to grow employee savings. The sums you invest in the PEE are blocked for a fixed period. After this period, the amounts are no longer subject to income tax.
Certain banking products can also represent advantages once retirement is reached. Products such as the Livret A and the LDDs (Sustainable and Solidarity Development Booklet) are essential for retirement. The first brings 0.50% since February 2020. For LDDs and Livret A, the ceilings are respectively €12,000 and €22,950. These amounts may not be enough to cover retirement expenses, but you can still benefit from them.
The importance of life insurance
Insurance is advantageous for a saver because it is synonymous with different privileges from security to performance. It also reflects a reduction in income tax and interest for all contracts of eight years or more. The limit set is €9,200 per year for the household or couple, compared to €4,600 per year for a single person.
As a saver, you have the choice between a multi-support contract and a mono-support contract. The latter consists of funds quantified in euros. These funds constitute a guarantee of your capital. The multi-support contract for its part includes units of account (UA) in addition to funds in euros. This type of contract seems better in terms of remuneration, but there is no capital guarantee. You can also turn to savings solutions specially dedicated to retirement. This is, for example, the PER or Retirement Savings Plan which has replaced collective and individual retirement savings contracts since October 2020.
Choose pension savings from Swiss Life
Swiss Life is a player that specializes in wealth management. He offers you to take advantage of his Plan pension saving specially designed in accordance with the legislation in force. Through this plan, Swiss Life offers you retirement management which boosts your savings over the long term and which secures your retirement and your assets. Swiss Life has stood out for its expertise in the retirement savings sector for 10 years.
