It is quite possible to live serenely in retirement with the many existing investments. Becoming an annuitant is one of the best solutions for being protected at retirement age. It is an excellent insurance to be financially independent, but it requires some preparation. So what are the steps to take? In this article, you will find the answers to your questions, as well as some tips that will be useful to you.
Become an annuitant: how to do ?
First of all, to become a pensioner and ensure an additional income once retirement age has arrived, you must set achievable and clear financial goals. These must be based on your investment and savings capacity, as well as the duration of the latter. Defining your objectives in advance makes it easier to determine the amount of pension you will need each month.
To achieve the objective, you will then have to save money, if you are not an heir. This will allow you to build up a basic capital throughout your life, necessary to become an annuitant. It is recommended to save about 30% of your monthly income, even if it is only a small amount at the very beginning. It is essential to save money as soon as possible. For example, you can save €250 each month from the age of 30 in order to benefit from a retirement at the age of 65. You will therefore have a nest egg of €183,866. Whereas if you only start at the age of 40, you will only have €110,873 at the age of 65, which gives you a significant difference of €73,000.
Finally, do not hesitate to take action and at get out of your comfort zone. You have a multitude of choices when it comes to investments. You can bet on life insurance for a long-term investment, or choose the PEA, or Action Savings Plan. This is an investment generally presented by banking establishments, by combining a cash account and a securities account.
You also have the option of real estate investment companies, or SCPIs. We then invest our capital in the management and rental of real estate. Investments in Accommodation Establishments for Dependent Elderly People or EHPADs are often the most popular.
Tips for becoming an annuitant
In terms of capital to be invested, you have to know good estimate it according to your abilities and your goals. You have the choice of investing the money all at once and letting it grow or opting for a long-term investment, in several installments. To know exactly how much you can invest, start by making a list of all your monthly expenses and order them in order of priority. The goal is also to be able to release a sufficient « rest to live ».
Then it is advisable to diversify your investments. Having several sources of income makes it possible to limit the risks of finding yourself penniless. For this you must promote safe values such as real estate, life insurance, or the housing savings plan, or EPL. The latter allows you to buy a main residence at a lower cost for only 2% of your income for 25 years.
Finally, it is necessary plan for unforeseen expenses, including various taxes. If necessary, do not hesitate to contact a wealth management advisor.
