The income gap

Here in Belgium we sadly have on average the lowest pensions in Europe. In numbers that means that the difference between your last paycheque and your first pension payment is on average 54 %.

That is less than half of what you were used to have as an income. So if you want to keep your same lifestyle you need an extra income. If there is no side hustle to fill that gap, you better have the capital ready to keep on filling the “income gap” or “pension trap” as they call it.

Now there have been lots of calculations by multiple economists, but they all agree on one thing, if you want to live comfortably after your retirement. You need approximately 1080000,00 EUR. Estimated for living another 30 years after retirement and adjusted for inflation.

Of course these numbers apply for Belgium but in other countries were pensions are higher less capital will be needed.

But the solution is the same, invest wisely and don’t just let your hard earned money lose value in a savings account. Invest in funds, ETF’s, real estate, crypto, commodities, gold silver,… The returns will be a lot higher and the compounding effect will kick after a while and your settled…

Sincerely,

Pele23

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