Do you ever think about your pension?
That may seem very far away, but it is so smart!
Do you want to provide an extra retirement provision in addition to your AOW?
Maybe even build up on top of your employer's pension?
You can easily arrange yourself !
We will compare a few options for you and show you how you can also build up tax-free extra income for after your retirement.
In principle, you can easily save for your pension in an ordinary savings account. Internet savings or a deposit will also suffice. However, there are certain advantages and disadvantages. Most important , however, is that you always go for the highest interest! In the overview below you always see the latest interest rates.
With deposits you often get a lot higher interest, but then you have to secure your money. Then you cannot access them in the meantime . On the other hand, that is one of the advantages of an average savings account, if something unforeseen happens, you can simply withdraw your savings.
To get as much as possible in your savings account, we recommend that you read our article with 10 tips to save more money . This ensures that you can make extra deposits for your self-accrued pension provision. This way you can earn money very well via the internet , such as filling out surveys for money .
Please note that you should not save too much . Is that possible? Yes, certainly, because if you have more than roughly $ 30,000 in assets (together with partner $ 60,000) then you have to pay capital gains tax. Later on we will give you tips on how to avoid this if you get so much saved up!
The disadvantage of saving is that the return is actually negative . The interest you receive does not outweigh inflation at the moment. Conclusion: your money is actually worth less. And that is a shame.
That is why many people are looking for alternatives to saving. One good and popular one is investing. (For the rest, read our article 7 Safe Alternatives to Savings Account ) . You can earn a lot more with your savings with this, so that the accrual will also be higher at the bottom of the line.
Please note that investing involves risk. So you should not go here for short-term investment constructions such as CFD Trading . You probably have enough time until you retire to be able to do it with normal stocks or funds.
So rather go for the 'traditional' forms such as shares and funds. The best broker is Binck Bank , which has been voted the best low-cost investment platform for years (already 15 times the No. 1!). Request a free information package and immediately receive $ 200 free transaction credit!
You can also save specially for your pension with products where your saved money does not count towards your capital gains tax. You get this exemption with Annuity Insurance and Bank Savings . Please note that here you will have to deal with a lot of rules and things to take into account:
If you are going to have the money paid out that you have saved yourself, you must count that as income and therefore suddenly pay income tax on it again. That does not necessarily matter, because retirement age you pay a lower percentage of income tax and you can now deduct the money you invest from your income, but only up to a certain amount. This is your annual space . Via the link you can read about it on the site of the Tax Authorities.
It makes little sense to save more with these products than this space, because then you pay income tax on them now and after your retirement, and that is doubly a shame! Then you better start investing ...
Another way to relatively increase your pension is by lowering your costs. Then you also have more left over… we have a lot of saving tips for you! Too much actually, in total worth more than $ 10,000, - We will not be able to explain all that to you here.
That's why we've created a really handy money-saving test . Can you find out in 15 simple yes / no questions where you can keep even more money. Only tips where you do not have to leave anything (because who wants to bite on a piece of wood during his old age?) And we immediately add the links to the sites / institutions to arrange the savings more directly.
Earlier you could read in this article that you still have to pay tax on your income during your retirement, but that this is a lower percentage. This indirectly means that it is extra advantageous to earn extra during your retirement.
Because you have enough time, right? Indeed. And nowadays you can easily earn money through the internet . Without much effort or thinking, just a few hundred euros per month. Think of completing surveys for money (do that at the best paid survey sites ) or earning money with your own website . You will be surprised how simple this is.
An important question we often get is how much you should actually save. Now there is no obligation in the Netherlands, because you always get an AOW. But that is also not a fat pot . Now you also build up a pension at most salaried employers that you get on top of that, but that does not have to be sufficient either.
But that again depends entirely on your wishes and goals on your bucket list . If you want to do all kinds of things after your retirement that cost a lot of money, such as traveling abroad or buying an expensive classic car, then it will quickly become a different story.
It also depends a bit on how long you are still alive. Because your pension and AOW will continue, but your savings account will still be empty. And perhaps you also want to leave a legacy? Actually, we can only conclude that more is always better.