With retirement investing, you can contribute to your retirement pot through an investment account. This is done through a tax-advantaged arrangement, where your contributions are deductible from your taxable income. The returns you make on your investments are treated favorably for tax purposes. The accumulated wealth can later be used to supplement your retirement.
The major advantage of retirement investing is the ability to choose your own investment strategy. You can tailor your portfolio to your risk profile and investment horizon, whether you want to invest conservatively or take on more risk for higher returns.
Key Features
- Tax Benefits: Contributions are deductible from your taxable income, providing tax advantages.
- Long-term investing: Suitable for retirement savings with the opportunity to benefit from long-term returns.
- Flexible contributions: You decide how much you contribute, with the option to contribute monthly or annually.
- Diversification: Invest in a wide selection of products, such as stocks, bonds, index funds, and sustainable investments.
- Determine your own strategy: Choose your investment strategy based on your risk profile and desired return.
- Online platform: Track your investments and returns through a user-friendly online platform.
- Retirement accumulation: Build wealth for your retirement, allowing you to enjoy your old age more.
Example situations where you can benefit from retirement investing
- Retirement supplement: You can build additional wealth alongside your mandatory pension scheme.
- Tax advantage: Benefit from tax deductions through your retirement investments.
- Flexible investments: Choose stocks and bonds to benefit from market growth in the long term.
- Start early: Begin investing for your retirement at a young age to have more time for your wealth to grow.
Costs and Fees
- Management fee: Starting from 0.50% per year (depending on the type of investment product).
- Transaction costs: €1.95 per transaction (depending on the type of investment).
- Contributions: Flexible, you decide how much you want to contribute monthly or annually.
(Note: costs may vary depending on the chosen products and investment strategy)
Risks of retirement investing
Like other forms of investing, retirement investing carries risks. The value of your investments can fluctuate depending on market conditions. Only invest money that you do not need in the short term and choose a risk profile that fits your investment horizon and financial situation.
Why choose retirement investing?
- Long-term benefits: Investing can yield a much higher return in the long term than saving.
- Tax benefits: Opportunity to save on taxes through tax deductions on your contributions.
- Flexibility and control: Choose how you invest and how much you contribute for your retirement.
- Diversification: Invest in different markets and products to spread risks.
- Growth opportunities: Benefit from the power of compound interest and growth of your investments in the long term.
With retirement investing, you can secure your future while enjoying the benefits of investing. Start today to build your retirement pot and ensure a more comfortable future.