¿Estoy a tiempo de tener una buena jubilación?


Am I still in time to have a good retirement?

It’s only natural to ask if one is still in time to prepare for a good retirement. If you want to know how much you need to save up now to have a good pension pot in the future, it’s important to have an estimate of the state-paid pension and, depending on that, together with an estimate of your needs during your retirement, you can set your savings target for your retirement. 

Start saving now to improve your future. That’s the key to being in time to prepare for a good retirement.

How much money do you think you’ll need when you retire? 

If you’d like to make a simulation of your retirement beforehand, think about your basic, recurrent needs during your retirement. How much money do you think you’ll need when you retire? You can do an estimate by dividing your monthly expenses from basic needs, housing, leisure, health or money given to help out your loved ones. This will give you an idea of the most recurrent or fixed expenses that will remain during your retirement. Here’s an example:

Based on 2022 data from the Spanish Statistics Institute for an average household in Spain
Mortgage or rent - €1,000
Food - €650
Household expenses 
(Utilities, Internet...) - €300
Petrol - €150
Money to help relatives - School expenses - €100
Leisure €200
Health €200

Total €2,500

How much pension will you get?

The retirement pension will be 82% of your last salary. This is according to the OECD (Organisation for Economic Co-operation and Development) in Spain. In other words, this rate is called the replacement ratio, which is an average 71% in Europe and 63% in OECD countries. The long-term forecast, according to the European Commission (EC), is that this percentage will drop down to 40%, which means that we’ll lose 60% of our purchasing power once we retire.


 

How much should you save for your retirement?

This is one of the most recurrent doubts. If you're wondering how much you should save to improve your retirement, we advise you to make a simulation of your retirement and be aware of your situation based on your age and circumstances. This will give you an estimate of how much you should save every month to reach your goals or expectations. Here are a few real examples: 

How can you save?

The best way to save up is by being systematic. By getting into the habit of saving up and with time on our side, it will take less effort to reach our goal. There are different ways of saving up for the future. We can give you the best savings solution for your future. Learn about our products and choose the one that best adapts to your needs. 

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FAQs


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  • How long do I need to contribute to the Social Security institution to get 100% of my pension?

    • It depends on how old you are when you retire and the contributions made to the Social Security institution during your working life. The retirement age in Spain will increase gradually until 2027, when it will be 67 years. In 2018, the retirement age was 65 years and 6 months if you wanted to receive 100% of your pension.

  • What will happen if I become unemployed or my business closes down?

    • There’s the option of paying the contributions yourself through special agreements with the Social Security authorities to keep being entitled to your pension. Ask one of our advisors or staff members. 

  • How is the widow/widower’s pension stipulated?

    • The deceased must have been registered with the Social Security institution and paying contributions to it for a certain time. The calculation basis depends on the deceased’s situation (active worker or pensioner) and the cause of their death (common contingency or workplace contingency). Feel free to ask for advice.

  • When should I start saving up for my retirement?

    • There isn’t a specific age to start saving up for your retirement. But there is a maximum age accepted and recommended by any advisor: the sooner you start, the better, because it will require far less effort. Therefore, as soon as you have some savings capacity, like for example at 30, you should start saving up or even before if possible.

  • How can I retire at 55?

    • Generally speaking, you can’t retire at 55, as you need to reach the minimum age to be entitled to a forced retirement pension, which is four years before the legal retirement age.

  • How to get the best pension possible?

    • Firstly, you have to take into account your age, savings and income. We advise you to bear in mind all the keys to getting the best pension possible. Age is a determining factor in receiving your retirement pension, based on the number of years you’ve been paying contributions to the Social Security institution and the increased minimum age. As we know, the higher life expectancy has also meant an increase in the number of years you will be receiving said pension. Also, putting some money aside every month, as if it were a fixed expense, will be essential to build a nest egg that will add to your pension. With time and perseverance, you’ll be able to make those savings work for you and get the best return possible. 

  • How do I know if I’m entitled to a pension?

    • In order to be eligible for a pension, you must have paid contributions to the Social Security institution and have been working for the minimum time set to receive a pension. You can ask for this information online, through the Social Security website.

  • How much should I save every month for my retirement?

    • There isn’t a specific amount to save, but we do advise you to put aside at least 10% of your monthly salary and go increasing it as your salary rises over time.

  • What should I do to have a good pension pot?

    • People often ask themselves what to do to have a good pension pot, but there isn’t a specific guide for this. What you really need is the help of an expert advisor or to draw up a plan with a pension scheme early on. We advise you to get going early on. So how do you prepare for your retirement? Some tips are first thinking about how you'd like to live when you retire. Estimate how much pension you’ll receive from the government, taking into account important factors like inflation and your return or risk profile. Look into pension schemes and set up the one that best fits your needs and persevere and be patient to avoid touching the nest egg you’re building for your retirement.