The challenge of freedom – are your finances holding back your retirement plans?
08.04.2008 10:00The majority of the Finns who will soon be at the retirement age want to retire when it becomes officially possible. About one third wants to retire before the official retirement age and one fifth wants to keep working as long as possible. These were the results of Nordea’s new study for which more than 1,400 Finns between the ages of 50 and 64 were interviewed. Altogether the sample of the study, carried out in late March, comprised 4,700 people in the Nordic countries.
The youngest (50-54-year-olds), especially men, are most eager to retire before the official retirement age. Yet as the retirement age comes closer, the timing of retirement seems to become more problematic and financial situation drives many to postpone their retirement until later. Especially women and unmarried people are planning to retire at the official retirement age due to financial reasons. The lure of retirement lies in the wish to have more spare time and time for yourself and your own hobbies. Travelling is the number one dream related to retiring; on the other hand, health and personal finances give people worries. Close to one third of the Finns who wish to retire earlier do not believe, however, that they will have enough money to do so.
One third of the 50-64-year-olds consider their financial situation to be worse now than what they thought it would be at this age when they were 30 years old. One in four regrets not having started saving for retirement earlier or not having saved enough. This is a useful reminder for younger people and all those surprised by the pension estimate or accrual stated in the pension record, which will soon be delivered to your letterbox.
Every fifth person in the age group has drawn up a will. The majority feel that it is better to distribute money during your lifetime when you can decide yourself how much to give and to whom. The large majority also feel that it is better to realise your own dreams than to leave an inheritance.
Pension might seem to belong to the distant future but it would be worthwhile to spare a moment to think about it. It may be hard if you have to cut your standard of living after retirement or if your long-term dreams are not fulfilled. When you save small amounts every month, they make a large sum in the long run, which you can use to improve your standard of living after retirement and realise your dreams.
Pieces of advice:
- You will soon receive a pension record showing an estimate of your future pension. Remember to check the details!
- Consider realistically what expenses you will have and what your retirement dreams are.
- Make a long-term plan and start saving in time.
- When you save monthly, small amounts add up to a nice sum in the long run.
- Think about where you would like to live. How can you realise your dream?
- Think about inheritance - as unpleasant as it is; are the beneficiaries the ones you want?
Tarja Svartström
Private Economist
