Why take advantage of these savings options ?
You have plans : to buy a house, get married… or to prepare for your retirement.
Your company helps you prepare for these plans by providing you with employee savings plans.
They can help you save faster and more easily than if you were to do this by yourself. Your company has negotiated more attractive rates for you than if you were saving all alone, and it assumes your account operation costs as long as you are an employee. It would be a shame not to take full advantage of this opportunity !
Saving for retirement, a necessity
Unfunded pension plans do not cover 100% of the final salary and population aging is amplifying this imbalance.
Consequence : to maintain your lifestyle, you must turn to supplemental savings that will allow you to benefit from capital and/or an annuity when you retire.
If you think you have time, think again ! Retirement will be the biggest expense of your life. You are living longer and in better health. This is very good news, but it means more leisure expenses, for example. You may be retired for a third of your life, which corresponds to 25 or more years of “vacation”. It is easy to be caught up in the day-to-day and to put things off until later, but if you think about it, saving this much money requires that you start now.
Start saving as soon as possible
Every euro saved will, with time, allow you to earn capital gains. The ideal is therefore to save as soon as possible and to think from time to time about re-assessing the amount that you want to have put aside.
If you invested €1,000 in an employee savings plan every year, you would have close to €75,000 after 30 years, with an assumed annual yield of 5%*.
Capital gains can therefore contribute both to building up capital and to the savings effort itself. To accumulate the same savings in 10 years, you need to multiply your annual savings effort by more than 5! In other words, start saving as soon as possible…
How to save less and collect more …
- By starting to save at age 25
|Monthly savings||100 €|
|Total savings||48 000 €*|
|Capital at age 65||183 400€*|
- By starting to save at age 45
|Monthly savings||300 €|
|Total savings||72 000 €*|
|Capital at age 65||132 400€*|