Retirement is a period of life in which we shall find ourselves in a situation of higher vulnerability than in earlier phases. The more precise our objectives are, the better we will be able to plan for retirement.
Certain contingencies are more likely to arise, such as sickness or circumstances of reliance, and it is critical that we are well prepared for them. On the other hand, when it comes to coping with additional financial efforts or some unanticipated circumstances, there is far less leeway.
We will have a public pension of a greater or lesser amount depending on how we contributed as workers, and which in any case will be approximately 25% less than our previous income from work, as well as private savings that we have managed to accumulate and which supplement this public pension once we have left the labor market.
In other words, what we have not done in terms of saving and preparing before retirement, we will be unable to achieve in the future. Setting retirement objectives and developing future plans and planning for retirement will not only improve that stage of life, but it will also improve your day-to-day life because of the peace of mind that comes with knowing you have a plan for the future. It also makes it easy to see whether any adjustments to your savings strategy are required.
Plan for retirement
- Establish a timeline and a budget for the rest of your life. Determine the most critical milestones on the spending side: the end of the mortgage, the approximate end of the children’s school, the cost of present entertainment, and the cost of the entertainment I wish to keep in retirement. This will aid in determining the amount of money required in the long run.
- Examine both current and prospective resources. Determine how much money you have set aside for retirement and how you want to grow it. Make a plan to contribute to it on a regular basis and calculate how much money you’ll have saved by the time you retire. This is a fantastic method to see if your intended savings and goals are in sync.
- Determine what type of public pension you will get. This will give you an estimate of how much recurrent income you’ll have after you retire.
Decisions may be taken to better your future retirement using this comprehensive map of income and costs, such as boosting private savings, increasing payments to pension schemes, or taking steps to improve the future state pension are all ways to strengthen the future pension (e.g., a self-employed worker increasing his contribution bases or a worker accepting a second part-time job); regularly review assets and be more involved in their management, such as putting them into more conservative positions; and adjust your retirement plans to include activities and a lifestyle that you can afford based on your projected future income and costs.
Planning for retirement through investment funds
Your money begins to work for you when you invest your savings. Investment funds are cutting-edge, specialized vehicles that provide an appealing way to earn from your investments. A mutual fund gives you access to a vast investment portfolio that you wouldn’t be able to invest in on your own, as well as the transparency and security mandated by law. Mutual funds allow you to diversify, control risk, and earn greater returns by putting your money in the hands of a team of experts.
Investment in real estate
Those who are thinking about retiring can consider investing in real estate. It’s possible to find fantastic bargains with really high returns on investment when investing in income property. A rental property may provide much more income than typical passive investments if you buy the appropriate property at the right price and on the right conditions.
Obtaining a new residence
Residence in Spain
When it comes to real estate investing, Spain has a lot to offer. It is not just a lucrative real estate market, but it is also a desirable location for those looking to relax and retire. Spain also has a cheap cost of living when it comes to retirement. You may easily retire on $2,000-2,200 each month, or $25,000-27,000 per year. Naturally, if you live a little further out from the large cities, you can retire on roughly $1,700-1,900 each month, or about $20,000-22,000 per year.
Non-EU nationals can get permanent residence in Spain, including Schengen-area travel, in exchange for specific forms of property investment under the Spanish Golden Visa residency system.
Residence in Portugal
Portugal is also gaining traction in real estate investment. From beach properties to luxury resorts to ancient townhouses, the vibrant Portuguese market offers a wide range of options. The robustness of the Portuguese market, which has recovered well from the financial crisis and has now shown resilience to the COVID-19 outbreak, is the true appeal for investors. Portugal’s cheap living costs and good quality of life have attracted professionals and enterprises from all over the globe, resulting in a steady increase in the price of real estate in Portuguese cities over the last several years, thanks to sustained development in the tourist sector.
With investors drawn to its flexibility and rewards, the Portugal Golden Visa program has proven to be the most popular plan in Europe. The Portuguese government has extensively marketed the investor visa program since its inception in 2012. A family with dependent children can obtain a residence visa in Portugal by investing €500,000 in real estate. The golden visa can be renewed every two years as long as the applicant stays in the country for two weeks every two years.
If you’re planning to buy a home in Portugal or Spain, professional assistance may help you save time and money while also providing peace of mind. Our team at Orience International includes both legal and licensed real estate specialists. We can assist you in gaining a better understanding of the real estate market and guiding you through the property purchasing process in Portugal and Spain. Contact us to schedule a consultation with one of our experts.