Pension gap: How to secure your standard of living in old age!

Pension gap: How to secure your standard of living in old age!

Österreich - In Austria there is great dissatisfaction with the state pension system. According to a survey, more than two thirds of the respondents are dissatisfied and fear that their financial situation in old age will not be sufficient. This is particularly evident in the current geopolitical and economic situation that concerns people. More and more Austrians are assuming that he will continue to work in retirement in order to be able to maintain their standard of living. This reports ORF Burgenland .

At the same time, over 80 percent of Burgenlanders call for their age in good time. The popularity of savings books, building society contracts and life insurance is unbroken. On average, people invest 250 euros per month in private provision, whereby men pay significantly higher amounts than women. This happens despite the tense economic situation, which indicates that many are slowly realizing that the legal pension alone is not sufficient to secure the usual lifestyle, such as Consumer center explained.

pension gap

According to Expert: Inside, the net dent that flows from the statutory pension insurance is significantly lower than many expect. The big challenge is that the cost of living in old age is often higher than the actual pension amounts. This difference, known as a pension gap, forces many to provide additional private pension. If possible, experts recommend investing 10 to 15 percent of the monthly net income in addition to the statutory pension in retirement provision. Offers such as the Riester or Rürup pension offer state grants for old-age provision, and also asset-effective benefits from employers can support the savings process and should be seriously considered.

The challenge remains that the legal pension alone is not sufficient to maintain the usual living standards in retirement. With pragmatic measures in private pension provision, however, many can reduce their pension gap and thus better secure themselves for the future.