5 ways to invest on retirement from 20 to 60 years
The 20 year old. 800 euros per month salary (if he’s lucky). To get 30% (i.e. € 240) in 50 years, a fairly balanced portfolio is enough. 70% equities, 30% bonds. 640 euros per year are enough, that is 54 euros per month. These calculations, like the others that follow, are net of taxation, inflation and costs.
The 30 year old. Theoretical salary of 1.000 € per month. He needs to get a little more than the student, that is 333 euros, to bridge the pension gap. For him you go up with caution and less risk. The portfolio moves to 40% of bonds and 60% of equities. This person will have to pay € 92 per month from his salary into his wallet.
The 40 year old. € 1,400 monthly salary. You must get 467 euros per month to supplement your pension. Its portfolio is even more conservative, 60% of bonds and 40% of equities. Your monthly payment to your wallet should be 198 euros per month.
The 50 year old. Earn € 1,800 a month, and it’s even more prudent. Its portfolio is 80% bonds and 20% stocks. His gap will be 600 euros a month more to get. To do this, he will have to pay € 510 per month in his form of supplementary pension investment.
The 60 year old. If you start so late, while making good money, let’s say 2,200 a month, it is even harder, indeed, very hard. Also because you are even more cautious, perhaps investing 100% in bonds. You will have to get € 733 per month from the investment for the supplementary pension, and you will have to do it by paying € 1,980 per month. Clearly, something impossible to do, since there would be very little left to live.
… these calculations show that it is essential to leave early, very early, in getting there supplementary pension. Are you grandparents? Give it to your grandchildren, you will get by with little, as you have seen. Are you parents? Do the same thing. Grandchildren and / or children will thank you like never before in the future.