What is pension planning and how can it improve your financial future?

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The pension sector gathers under it the pension savings and investment products that exist in the market such as pension funds, provident funds and training funds, and various pension insurances such as life and disability insurance.

Pension planning is provided by a professional and qualified pension consultant who creates a comprehensive and personal pension portfolio for each insured and each saver according to his current and future needs and preferences.

Since every person, whether employed or self-employed, is required by law to set aside a portion of their monthly income for pension insurance, it is important to do it right and ensure optimal savings adapted to the needs of the saver and his family members.

What are the main goals of pension planning?
Pension planning has 4 main goals:

Adapting the pension portfolio to your and your family’s needs
Adjusting the amount of insurance coverage according to your personal data
Optimal utilization of tax benefits in pension savings
Choosing the most suitable products for you according to the data of each company and the management fees it charges
Creating a stable and desirable income at retirement age

Make the most of your life in retirement
You worked hard and built a whole life for yourself and your family – a life full of dreams, achievements and happiness. But what awaits you when you reach retirement age? What will be your ambitions and goals and how can you secure your overall future?

You may want to spend more quality time with your loved ones or travel the world. You may want to finance academic studies or weddings for your children. With financial advice and comprehensive pension planning, you can fulfill your wishes while maintaining your financial independence.

Retirement planning as part of pension planning
Retirement planning means preparing today for your future life so that you can continue to meet all of your goals and dreams independently. This includes defining your retirement goals, estimating the amount of money you will need and creating the right investment to increase your retirement savings.

Every retirement plan is unique. After all, you surely have specific goals for your life after retirement. That’s why it’s important to have a comprehensive plan designed specifically to fit your individual needs.

When you retire, you retire from work, not from life, so it is important to take care of your financial future for the days when you will not be able to work to earn a living. By early retirement planning, you can define the path to achieving these life goals without financial dependence.

What are the benefits of pension planning?
Defining a savings strategy in case of loss of income and your retirement age prepares the ground for a more comfortable and financially secure life.

However, this planning involves a lot of calculations. You must estimate possible expenses and identify reasonable sources of income. Accordingly, you must set aside funds for various savings and investment products and manage the associated risks. The task may seem daunting when you do it alone, but with the help of a professional pension planner, you can create a comprehensive pension portfolio that is just right for you.

Young people often feel a reluctance to save and set aside money for retirement or for long-term savings, thinking that it will be a long time before they get there and it is better to enjoy their money in the present. This is a false assumption, as the earlier you start saving, the easier your journey to financial freedom in retirement will be.

Here are some benefits of pension planning that will help you save and invest your money correctly:
Peace of Mind
When planning for retirement, you need to think about every scenario that could cause expenses. You filter your existing resources, identify gaps and work to create the capital you need. This approach ensures the creation of a quality infrastructure for retirement and gives you financial security even after you stop receiving a salary for your work.

People who know they are taking the right measures to avoid financial shortages later in life feel more relaxed. Quality pension planning will ensure that you enjoy life after retirement. This not only reduces the hassles during the retirement period, but also removes the stress in the years leading up to it.

The power of interest rates
The earlier you start saving, the longer your money gets to accumulate interest. Your investment accrues interest that is added to your capital. This way your capital becomes significantly larger than the original investment.

The longer your money is in the retirement savings and investment plans, the higher the return it will make. Even if you invest small amounts every month, these fixed deposits accumulate over time, accumulate interest and increase your capital.

Prepare for unexpected expenses
Unfortunately, old age brings with it many health complications and medical expenses can be high. Also, sometimes one of the spouses loses the earning capacity before retirement due to a disability or serious illness, which leaves the other family members in financial difficulty. That is why it is important to build a comprehensive pension plan that will provide a financial and insurance response to significant emergencies that will harm your income.

Tax Benefits
Funds saved for retirement in a variety of pension channels enjoy excellent tax benefits. Saving for retirement age, not only will it give you capital and a respectable monthly allowance at retirement age, but also in many cases, exemption from paying tax. These benefits will leave you with more money at retirement age and it is worth utilizing them optimally through professional pension planning.

Why is it recommended to plan the pension in advance?
Quality pension planning examines a variety of scenarios that can significantly damage the family’s earning capacity, for example in cases of loss of work capacity due to a serious illness or disability, a state of nursing and the death of one of the main breadwinners. Through professional pension planning, you can prepare well for these scenarios and enjoy peace of mind until retirement age.

The pension plan takes into account personal and family data of the saver and the needs and goals of his family. Accordingly, we create a comprehensive and high-quality pension portfolio that includes pension savings and investment avenues and insurance coverages that provide a wide range of solutions.