Tag: retirement

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Pensions

Time for a Retirement Reboot?

Happy senior couple enjoying retirement lifestyle having fun walking on the beach in a sunny beautiful day holding hands and hugging each other while traveling around Europe. In active old People.

Time for a Retirement Reboot?

“Retirement means doing whatever I want to do. It means choice.” – Dianne Nahirny

2 min read

Time for a Retirement Reboot?

“Retirement means doing whatever I want to do. It means choice.” – Dianne Nahirny

2 min read

Once you retire, how will you replace your income to maintain your current standard of living?

Nowadays there are more choices open to you than ever before when it comes to your retirement. This means there are more things you need to consider and have a plan for, like how to manage your finances to provide the income you’ll need to live on, how you’ll transition into full retirement and what lifestyle you want to enjoy in your later years.

Our Top Considerations

One of the biggest mistakes people can make is not saving enough for retirement. Our top 10 considerations in retirement are aimed at ensuring you have the ability to take control of your financial future. Knowing your destination helps you plan the best route to get there.

  1. Make a plan!
  2. When do you want to retire?
  3. Are there any ways you can reduce your tax liability?
  4. Can you continue working?
  5. Do you need to downsize?
  6. Have you planned for your long-term care needs?
  7. How much will you need to fund essential and non-essential spending in retirement?
  8. How much are you saving?
  9. When can you access your state benefits and how much will you receive?
  10. Have you taken the opportunity to receive trusted financial advice?

Planning is vital, and there is never a better time than the present. Work out what you spend each year now, when do you want to retire, how much of your spending is essential and how much is non-essential, and what lifestyle you wish to have in retirement. As a rule of thumb, it is often the case that people spend more in the earlier years of their retirement, and their spending reduces over time. It is important to take as many relevant factors as you can into account.

Your State Pension

In Switzerland, the pension system is split into 3 pillars. The 1st pillar is your state pension, the 2nd pillar is your occupational (workplace) pension, whilst the 3rd pillar is your private pension(s). The purpose of the Pillar 1 state pension is to provide you with a source of revenue to cover your basic financial needs.

Contributions are deducted from your gross salary as a percentage and are compulsory until you retire (age 64 for women, and 65 for men). Should you remain in Switzerland, you will receive the Pillar 1 pension as an annuity and does not have a transfer value (therefore, cannot be taken as a lump-sum). The amount you are paid is dependent mainly upon your years contributed, earnings, and the total value in your account. For the maximum allowance, men should contribute for 44 years and women for currently 43 years.

Reboot Your Retirement

We’re all leading busy lives and so it’s understandable if retirement plans have been placed on the back burner. If you are keen to revisit your plans and get them back on track so you can relax and fully enjoy your retirement years, there is never a better time than today, so please do get in touch. 

Get in touch today and book your initial, free, no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

Categories
Pensions

Your Retirement Matters

Your Retirement Matters

“Retirement is not the end of the road. It is the beginning of the open highway” – Unknown

2 min read

Your Retirement Matters

“Retirement is not the end of the road. It is the beginning of the open highway” – Unknown

2 min read

Today, things are evolving with immense speed. We are not only living longer, healthier, and more active lives, but we can often now decide when, how, and even if, we retire.

An important note to remember is that it is never too early to start thinking about retirement planning.

One of the most crucial things you can do is begin saving for your future. Though, worryingly, there are many of us who do not have a clear plan for what we want to get out of our retirement, and there are even more of us who may underestimate how much money is needed.

Questions for you

A useful start is to ask yourself these questions:

  1. How much money do I want to have saved by retirement?
  2. What kind of lifestyle do I want in retirement?
  3. What are my sources of income in retirement?

Essentially, the sooner you start saving and investing, the more time your money has to grow.

When you near retirement, the useful questions may change as you now have a clearer idea of what you have and what you will be able to afford.

You could now ask yourself:

  1. How long will my money last?
  2. Can I maintain my current lifestyle?
  3. Do I stay invested or do I draw an income?

As you may have noticed, it cannot be stated enough that the key to an enjoyable retirement is to start as soon as possible. This can save you the panic of being in a situation where you are not prepared for retirement.

Your Swiss pension

In Switzerland, your pension is structured in Pillars. There is the 1st Pillar, which is intended to cover basic needs, the 2nd Pillar, which is based on the contributions you make during your working life, and the 3rd Pillar, this being your private pension. The first 2 Pillars are compulsory, whilst the 3rd is not.

It is unlikely that the Pillar 1 and 2 pensions will provide sufficient income in retirement to support the lifestyle you envisage, and so the Pillar 3 pension helps to bridge that gap.

Unfortunately, there is no crystal ball for any of us to look ahead and know what is going to happen during our retirement. So, it is increasingly important to explore the different advantages offered by having an effective retirement strategy in place.

Never too late

There should never be an occasion where you think that it is ‘too late’ to begin saving for your pension. Even if you only have a small amount of money to put away each month, it will add up over time. In addition, with the right plans in place, you can make your money go further than you may initially think.

Investment is important

Investing is an effective way to put your money to work and provides you the opportunity to build your wealth. How to invest, and where to invest, can be slightly more complicated and has a lot to do with your personal circumstances and risk appetite.

Understanding the type of investor that you are is one of the first steps toward understanding what sort of investment approach is best for you.

We are here to help

Whether you are looking to save as much as possible to build up your pension pot, or you want your money to stretch as far as possible in retirement, it makes sense to have an efficient strategy in place. Having a solid retirement plan is vital for a worry-free future.

We can help you look at the right options for your retirement plans, investment strategies and more, tailored to your individual circumstances and objectives. To find out more and discuss your own situation, get in touch with us today.

Get in touch today and book your initial, free, no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

Categories
Pensions

Come Retirement, You Reap What You Sow

Hand planting beans seed in the vegetable garden. Growing vegetables

Come Retirement, You Reap What You Sow

“Some of the wealthiest people in the world became wealthy by saving money” – Doug McMillon

2 min read

Hindsight, they say, is a wonderful thing and that is certainly true for many retirees struggling financially. Diligent planning at the earliest opportunity, however, can make all the difference between enjoying a comfortable retirement and enduring a regretful one.

Retirement Regrets

Research constantly shows that people typically leave retirement planning too late and regret not saving more across their working lives. For instance, a survey1 recently revealed one in five people expect to leave planning for their retirement until they are aged at least 60. Another study2 found almost half of over-50s regret not saving into a pension sooner, while nearly two thirds wished they had made larger contributions at an earlier stage. These findings vividly highlight the need for more people to take control and prioritise retirement planning earlier in their working lives.

Pension Blind Spots

Other research3 has revealed the cost of being kept in the dark on key pension details, with over three-quarters of people not knowing how much they pay in pension fees. Additionally, a third of pension holders are unaware of their pension’s risk profile, with a similar proportion invested in low-risk funds. This lack of awareness in relation to fees and investment choices is estimated to cost an average pension holder around CHF 140’000 over their working life.

Engagement Gap

The lack of engagement has led to an industry campaign to boost people’s understanding of pensions. The campaign, which is due to run this autumn and winter, will aim to raise awareness of various pension-related issues so that more people can ultimately enjoy a better standard of living in retirement. Patterson-Mills completely supports this initiative and believes that one of the keys to a successful retirement is not just saving but financial education, too.

Help at Hand

While current everyday financial pressures can make saving a difficult task, it is clearly imperative not to neglect your pension if you do want to avoid retirement regrets. We can help you take control to ensure you are able to enjoy the happy and fulfilling retirement you deserve.

Get in touch today and book your initial, free, no-obligation meeting. You have nothing to lose and potentially lots to gain! Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32.

1Hargreaves Lansdown, 2022

2Aviva, 2022

3interactive investor, 2022