Ways to supplement your pension yourself

The future requires a solid financial plan. The state pension (AOW) and an additional occupational pension are not sufficient for many people to maintain their desired standard of living after retirement. Taking action yourself provides more security and flexibility. It is therefore advisable to consider investing in gold or silver. By making conscious choices, you can prevent financial shortfalls.

Why is it important to supplement your pension yourself?

The amount of pension varies per individual. It depends on accrued entitlements and employment history. Those who are self-employed or haven’t arranged full pension accrual risk having a lower income after retirement. Pension benefits are under pressure due to rising inflation and increasing costs of healthcare and living.

Building additional pension savings yourself gives you control over your financial future. You become less dependent on changes in legislation or economic developments. The earlier you start investing, the greater the benefit. This gives your pension time to grow. By choosing smart investment and savings solutions, you build a stable capital base.

How do you determine how much additional pension you need?

Having a clear understanding of your expected expenses helps determine the necessary pension supplement. First calculate your expected income from AOW and any accrued pension rights. Then compare this to your anticipated expenses after retirement. Take inflation and unexpected costs—such as healthcare or home maintenance—into account.

Your desired lifestyle plays a major role. Those who want to travel regularly or live more luxuriously will obviously need a higher supplement than someone with more modest needs. Setting a target amount makes it easier to create a savings or investment plan that suits your situation.

What are the best ways to build extra pension savings?

There are various ways to build wealth for later. Saving in a savings account is safe, but low interest rates make it less attractive. Investing offers the possibility of higher returns, but also comes with risks. Real estate is often chosen as a pension vehicle because it generates stable income.

Another option is investing in precious metals like gold and silver. These metals tend to retain their value and offer protection against inflation. Trading physical precious metals is relatively simple. They are a solid addition to an investment portfolio. By combining different strategies and precious metals, you spread risk and increase the chances of building a stable pension fund.

The role of investing in supplementing your pension

Investing also provides opportunities to grow your capital. Stocks and bonds are popular choices because historically they deliver higher long-term returns than saving. Index funds and gold ETFs are attractive options for those who want to invest efficiently without actively managing the market.

Precious metals play a complementary role in a balanced portfolio. Gold and silver retain their value over the years and offer stability where financial markets are volatile. This makes precious metals a suitable tool for long-term pension building.

Tax benefits of arranging your own pension

The government offers tax advantages to individuals who build their own pension. Annuity products and pension investment accounts offer tax benefits, such as deferred taxation on contributions and lower tax burdens on payouts. By making optimal use of these schemes, you reduce the tax burden and increase your net return.

Certain precious metals, such as investment gold, are exempt from VAT. However, the tax treatment of precious metal investments depends on your total asset value. This makes precious metals an interesting addition to other pension strategies. By combining tax-efficient products with inflation-resistant investments, your pension assets are used optimally.

How do you create a pension plan that suits you?

A solid pension plan aligns with your financial situation and future plans. Start by listing current and future income and expenses, and determine how much extra capital is needed to reach your goals. Then choose a mix of savings and investment products that match your risk appetite and time horizon.

Regularly evaluating and adjusting your plans is essential. Market conditions, legislation, and personal circumstances change over time. By periodically checking whether the strategy still aligns with your goals, your pension plan remains effective.

Practical tips for starting to supplement your pension

Starting to save and invest early offers the best chance of good returns. This is not only because you have more time, but also thanks to the effect of compound interest. Those who begin pension saving later in life must contribute more per period to achieve the same result. Automatic transfers to a savings or investment account help build capital consistently.

Diversifying investments reduces risk and increases the chance of stable growth. By choosing a combination of stocks, bonds, real estate, and precious metals, your capital is better protected against economic fluctuations.

Would you like to learn more about ways to supplement your pension yourself? Contact us for expert advice or explore our range of precious metals.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.