9 golden rules to prepare for your retirement
Family with children Do not wait to think about your retirement. The ideal is to think about it at 40 years old and earlier. Twenty years are needed to build a worthy capital with a reasonable savings effort.
To complete your pension, consider saving young. Then adjust your strategy according to your personal situation.
1) Take control of your future
It's never too late to worry about retirement. The ideal is to think about it at 40 years old. Twenty years are needed to build a worthy capital with a reasonable savings effort. Learn about what you will really get. This is the first step.
There are huge disparities between professions. With a replacement rate (ratio between the estimated retirement and the amount of the last income) close to 75%, civil servants who retire in 2016 or 2017 do not have to worry too much.
On the other hand, surgeons, architects and lawyers (around 30%) have an interest in putting money aside for their old age. If possible, avoid leaving with a haircut. Extending one's career to benefit from the full rate is more optimal.
• Income Tips: For your retirement, the first step is to save. The younger you start, the less effort you have to make. Then think about adjusting your wealth strategy according to the situation and your personal situation.
2) Own your home In times of uncertainty, owning one's home is reassuring: 58% of households own their main home, compared to 33% in 1953. Even though prices have risen since 2000, buying a home is a good reflex. To repay a loan helps to build wealth, because the monthly payments include a share of interest, but also capital.
When you retire, you save the amount of rent, which increases your purchasing power. The housing budget is "limited" to maintenance costs and local taxes. Be careful not to get into debt too much. Monthly payments must not exceed one third of your income.
• Revenue Tips: Buying a home is a strong commitment. For a young couple, it is often the first important heritage decision. Experts encourage their clients to invest in rental or leisure real estate before acquiring their principal residence. This is not the speech of Revenue. After considering the heritage of many readers, we affirm that, with some exceptions, the most successful ones are those who invest young in stone. To go off the beaten track is good. But you have to know how to stay classic.
3) Think about diversifying your heritage
The best way to prepare for retirement is to build a diversified wealth. Too many savers practice a naive diversification. Spread your life insurance in four or five funds invested in French securities is not enough. Because their performances are likely to be very linked and your contract finally not very diversified.
• Income Tips: At age 45, whatever your risk aversion, hold, depending on your means, rental real estate, stocks, bonds and money market products. As you approach retirement, you can only be a winner because these investment families do not perform well or badly at the same time.
4) Invest in life insurance
An investment that responds to a long-term logic. Premiums paid are capitalized over the years based on realized profits. Your savings remain available. Even if it is preferable, in tax terms, not to withdraw from your contract before eight years.
An investment that escapes tax increases. Life insurance is, with the PEE and the PEA, the big winner of the last tax turmoil. Even if it suffered, like all financial products, the increase in social security contributions to 15.5%. Feed your contracts according to your means and your personal goals.
Trophées d'Or du Revenu contracts are well suited to preparing for retirement. Flexible, with funds profitable in the long term, they will give you satisfaction if you adopt a strategy corresponding to your situation and your real needs.
• TipsIncome: No other investment offers so many assets or freedom. You choose your level of risk and the terms of exit (withdrawal or annuity). On the fiscal side, the benefits continue, for the most part: earnings remain exempt from tax (conditional) and the capital of inheritance tax, up to 152,500 euros per beneficiary.
5) Do not forget rental real estate
The share of households owning a dwelling that is not their main residence (second home or rental investment) is 18.5%: 80% of them own their homes.
The purchase of a home for rent is financed for all or part on credit. By investing at age 45, you will have paid back the bank fifteen years later and the rents will then complete your retirement.
Prefer old to new, 20 to 25% cheaper, for rents roughly identical. The rental profitability (annual rent / purchase price) is therefore better. Especially, if you buy a property to renovate. Because you save on the initial investment and the cost of the work is deductible, in terms of tax, rents cashed. Better, if your expenses exceed your property income, the difference is deductible from your global income up to 10,700 euros per year. Optimize your financing. Credits in fine should be avoided, except for taxpayers taxed at higher levels.
• Revenue Tips: Buying apartments on credit or, better, houses if you can afford them, renting them out is a great asset strategy. Completing your retirement with one or two rents is interesting. The more you invest in your real estate operations, the more money you will earn. Notice to the DIYers!
6) Explore the trail of retirement products
Perp. The tax deduction at the entrance to the popular retirement savings plan (Perp) to taxpayers, taxed at 30, 41 or 45% that can, by this means, "tax free" part of their taxable income.
Perco. For employees. It saves money in an attractive tax environment because earnings are exempt from income tax, but no social security contributions. A good supplement to life insurance and the PEA if the proposed funds are efficient and if the company abounds your payments.
Madelin. Supplementary retirement scheme reserved for the self-employed, the liberal professions and tradesmen. Asset advantage: you benefit at the entrance of a tax benefit proportional to the amount of your payments. Failure to invest: you can not get your money back before retirement, except in limited circumstances; the exit is in the form of annuity. In conclusion, study this placement closely, according to your personal situation and the characteristics of the proposed product.
• Revenue Tips: You need to know what you are getting into. The Perp and Madelin contracts are "tunnel" investments. They are characterized by the unavailability of savings until retirement. There are cases of exceptional withdrawals (different depending on the products). Another limit: your capital can be paid back only in the form of an annuity (except exception).
7) Secure your assets after 65 years
It is important to reduce risks, both in terms of capital and income. It is also necessary to ensure the liquidity of the assets, their availability and to adapt the flows to fixed expenses.
Keep your principal residence, possibly your second home, that is to say the living environment, and sell the assets to which you are little attached. This results in fewer management concerns and lower expenses. You can invest in real estate via SCPI, to ensure regular income by pooling risks.
Get regular income through life insurance by implementing scheduled partial surrenders, subject to an attractive tax regime. "There is no age limit for life insurance," says Charles Meunier, wealth manager near Lyon, author of a study on the main principles of wealth management of the elderly. The important thing is not to subscribe for purely fiscal reasons. The insurance must be random.
• Revenue Tips: Notaries note that many people in their 60s tend to lose their strength too quickly. Find the right balance between the need to keep assets to live well and the legitimate desire to help your children and reduce future inheritance taxes by making donations during your lifetime.
8) Convert a capital into an annuity
Specificity of life annuities. You have a guaranteed income for life without having to worry about managing your savings. The fear of missing disappears. Because rent can not fall except in purchasing power because of inflation.
The life annuity is most often made out of necessity after using the other solutions intended to procure rEvenus. There are various methods of implementing the life annuity: part of the price can be paid in cash, the rest in the form of annuity; it is also possible to convert the entire price into an annuity.
The conversion of a capital into a life annuity. The capital is alienated from an insurer who, in return, pays you a life annuity. To compensate for the impossibility of recovering your money, companies have designed specific contracts that need to be scrutinized. Contracts provide, in the event of death in the first years, to pay a capital sum to the designated beneficiaries.
• Revenue Tips: Retaining your capital gives you more independence and allows you to accumulate withdrawals and interest. But after 75 years, people with modest heritage, without children, can study the opportunity of giving up part of their savings in favor of a very reassuring life annuity. Pay attention to the charges taken by the insurer. Also examine the revaluation of the rent. It depends on technical parameters. It may be attractive to have a lower annuity initially, but which will revaluate better later.
9) Protect yourself against addiction
France is aging. The loss of autonomy concerns 2.7% of the population aged 60 to 79 years. Between the ages of 80 and 84, this rate rises to 14.3%. According to INSEE projections, the number of dependent persons is estimated in 2030 between 1.4 (low hypothesis) and 1.7 million (high hypothesis). The progression should accelerate with the arrival at the age of the "baby-boomers".
The cost of the loss of autonomy. The assistance of a third person or the transfer to a suitable structure can cost more than 4,000 euros per month, much more than the average amount of pensions in France (1,300 euros gross).
Tap into his savings. This is the simplest step. But "many addicts are reluctant to do so having the impression of squandering the fruit of their work," says Charles Meunier, manager heritage near Lyon.
• Revenue Tips: If your wealth does not allow you to finance such an expense, consider insuring yourself against this risk. Privilege contracts that cover total and partial dependence in order to benefit from an annuity at the first signs of loss of autonomy. For a monthly pension of 1,000 euros, count 55 to 85 euros premium per month if you start contributing to 60 years.