“1 million euros needed to finance old age”: how do you ensure that you have sufficient capital at retirement age?

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by Niels Saelens
published on Thursday February 1, 2024 to 09:34
5 min read

From a recent analysis of The time It turns out that a stay in a retirement home costs an average of 2,100 euros per month. That is much more than the average pension. “That is why it is important to save for your old age during your career. According to our calculations, you need around 1 million euros,” says Franky Stevens, pension expert at the HR company Mercer. How do you save such a large amount?

Why is this important?

You can save for your old age in different ways. Many employers help you with this through the so-called second pension pillar. But you can also save for later yourself. Through the third pension pillar – pension and long-term savings – you are even eligible for a tax reduction. You can of course also do this on your own by investing in shares and ETFs, for example.

Context: The prices of Flemish residential care centers have risen by 10 percent in one year, the analysis shows The time. You now pay an average of 2,100 euros for a room.

  • “At retirement age we fall back on a monthly pension. However, for most people this will not be enough to pay for the costs of a residential care center. After all, you also have other costs at an older age, such as higher medical costs,” Stevens responds to our editors. “

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The article is in Dutch
Tags: million euros needed finance age ensure sufficient capital retirement age

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