Everybody wants a secured and enjoyable retirement. However, securities retirement is not as easy as it may sound.
Here are some tips to save up for retirement in Sweden;
- Clear debts
It is not logically possible to start saving money when you are in debt to another. Before the first step to living retirement money is to ensure you have cleared all your financial debt.
This may be from student loans, business loans, mortgages, or car loans. The only trick to clear your debt faster is by reducing your expenses and channeling a major proportion of your income to offset your loans.
- Set a savings goal and plan
A savings goal is why you want to see yourself in terms of finances for the period of your retirement.
The goal can be along the lines of where you want to live, the type of home you want to retire in, financial support for your spouse or partner, and the living costs for the period of retirement.
Having a saving plan is a strategy and is as important as the savings themselves. The plan is what sets the foundation for a successful retirement.
In setting up a financial goal and plans consider the following;
- The projected amount of money you want to save
- The saving strategy to implement – For instance the 50-30-20 rule, where 50% of your income is channeled for you need 30% on your ones and 20% left for savings.
Whatever type of saving strategies you use for your retirement ensure that you stick to it.
- Estimate the living costs.
- Open a retirement savings account
It is quite difficult to stick to one account for everything because chances are you might be tempted to withdraw in excess and that is why you need to have a special retirement savings account.
There are some financial companies in Sweden that give their customers the option of opening a separate retirement account.
In case you happen to be looking for one I recommend that you read some reviews from Swedish citizens available at Omdömesställe before deciding which one to go for.
To give you a head start you may perhaps with some reviews about Savr, a Swedish financial company that allows people to open saving accounts with them.
- Get an endowment retirement policy
The concept of endearment is mostly known for life insurance policies where your loved ones can get financial reimbursements upon your death however did you know that you can get an endowment retirement policy?
How endowment retirement policies work is that you have to purchase the policy in which you will be paying either annually or monthly and upon your retirement which is often the maturity date you will be getting money.
- Get into the national public pension
In Sweden there is the national pension system;
- The national public pension from the state
- Occupational pension from your employer
The national public pension system is based on your income on the taxes you’ve been playing since You’ve begun working in Sweden. It is the safest and the most secure way for retirement as it pays as long as you live.
The occupational pension on the other hand comes from your employer and will vary depending on your employment contract.
- Reduce your spendings
Reducing your spending is probably the first rule of saving money. Otherwise, if you don’t reduce your spending, there will be nothing up to save.
Reducing spending does not mean you have to sacrifice little enjoyment in life. After all, tomorrow is not guaranteed.
What you can do is minimizing the number of luxurious products you want or expensive vacations and things that are not necessary.
Investment is the ultimate way to guarantee a source of income upon retirement. there are various ways to invest your money.
To invest in Sweden, you can choose to invest in stocks growth or fixed interest investments as a passive income.
Between stock growth and fixed investments, I would highly recommend for you either invest in both or invest in fixed investment.
Why fixed investment? because with fixed investments you’re guaranteed that your money will come back it may not be much as what you can get from growth Investments but the risks of losing it are very low.
Growth Investments with the right strategy have the potential of making you extremely richer. but be aware of the many risks in growth investment. for instance the exchange currency risk and the market risk.
You can also go through the traditional way of investing money and get into real estate. real estate in Sweden is particularly a stable market and each year the prices of real estate keep shooting up.