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How to prepare for retirement from a financial point of view

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You are retired once your professional activity comes to an end. However, you must continue to lead a quiet life. We have to admit that the pension will not be enough to finance the serene way of life to which you aspire. In doing so, it is important to prepare for your financial retirement. Here are some tips for creating a financial mattress that will allow you to maintain your lifestyle even when you are professionally inactive.

Invest in real estate before retiring

Buying real estate during your working life is one way you can limit your housing expenses once you retire. After repayment of your mortgage, you can enjoy your home without owing anything more. By owning your home, you will not be forced to leave the home because of a drop in income.

By owning your own real estate, you can qualify for additional income by considering resale. The price of your property thus allows you to finance a significant part of your retirement. You are free to consider the rental investment which opens the doors to various real estate tax exemptions. However, do not forget the charges that may accompany the property. These are mainly maintenance work or condominium fees.

An investment in a company for a peaceful retirement

The physical stone is not the only one you can rely on. To spend a beautiful retirement, think of the paper stone. Which consists of buying shares in SCPI or Real Estate Placement Companies. This alternative gives you the opportunity to access high returns, sometimes reaching 5%. Like OPCIs, SCPIs are associated with significant remuneration. However, the latter is a function of the valued units and the dividends that the company distributes.

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The paper stone has another undeniable advantage. Know then that OPCI and SCPI can register in a life insurance contract. This allows you to benefit from profitable taxation in terms of inheritance.

Employee savings and banking products

To live in retirement away from any money problem, learn about salary savings. This alternative remains one of the most recommended. Indeed, when you pay profit-sharing bonuses and participate in a company savings plan, you have the power to grow employee savings. The sums you invest in the PEE are blocked for a fixed period. After this period, the amounts are no longer subject to income tax.

Some banking products can also represent benefits once you retire. Products like the Livret A and LDDs (Sustainable and Solidarity Development Booklet) are essential for retirement. The first has contributed 0.50% since February 2020. For LDDs and Livret A, the ceilings are respectively € 12,000 and € 22,950. These amounts may not be enough to meet retirement expenses, but you can still benefit from them.

The importance of life insurance

Insurance is advantageous for a saver because it is synonymous with different privileges from security to performance. It also reflects a reduction in income tax and interest for all contracts of eight years and more. The fixed limit is € 9,200 per year for the household or couple against € 4,600 per year for a single person.

As a saver, you have the choice between a multi-carrier contract and a single-carrier contract. The latter is made up of funds encrypted in euros. These funds constitute a guarantee of your capital. The multi-support contract for its part includes units of account (UC) in addition to funds in euros. This type of contract seems better in terms of remuneration, but there is no guarantee of the capital. You can also turn to savings solutions specially dedicated to retirement. This is for example the PER or Retirement Savings Plan which has replaced collective and individual retirement savings contracts since October 2020.

Opt for Swiss Life retirement savings

Swiss Life is a player that specializes in wealth management. He suggests that you take advantage of his Plan pension saving specially designed in accordance with the legislation in force. Through this plan, Swiss Life offers you retirement management which boosts your long-term savings and secures your retirement as well as your assets. Swiss Life has stood out for its expertise in the retirement savings sector for 10 years.

Source: Magazine Assurance

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