How much do I get in retirement, and how do I proceed when I retire? These are common questions to ask when the end of working life is approaching. But the actual issue everyone should be asking is when they should retire. Namely, there can be significant financial differences between retiring in January and waiting until the summer. Here, we will discuss some facts regarding retirement that can help plan things promptly.
Salary, Pension, and Other Income
When trying to understand the study correctly, it is essential to realize that this is not yet another line of pension-compared-with-salary studies. Lots of such studies happen. In that case, the pension is usually compared with the last salary in working life and is reported as the critical figure compensation rate. Such studies are essential but have a decisive disadvantage: They only describe the reality of half the population.
Stairs Down for Favorable Pension
For those who are healthy and have the opportunity, it can be a good idea to go down to half-time in the last years of working life. In addition to providing a chance to change mentally from working life to retirement life, there are, according to Kristina Kamp, certain financial benefits of such an arrangement.
Instead of retiring entirely at the age of 65, you can go down to part-time the year you turn 64 and work part-time for two years until you turn 66. Then you can both retire at the same time as you are half-time and earn more pension without working more than you would have if you had retired at 65. In addition, you can use double employment tax deductions in the year you turn 66. So, you get more time for your money, says Kristina Kamp, but at the same time raises a warning finger.
Nothing Must. Nothing is Allowed.
Retirement! Many of us find it to be music to our ears—plenty of free time you may spend as you wish. However, ‘retirement’ does not happen overnight; one day, you’re busy with your work and coworkers, and the next day it’s all over. Nothing should and may occur when there is time for nothing. One is eagerly anticipating retirement, while the other is dreading it. Whatever path you look at it, it’s a significant shift.
Upset Emotions and Great Attention
We immediately understood this would attract attention and stir emotions when we got the result.
Similar studies have been conducted a few times in the past. However, it appears that the desire to zoom out and examine the entire picture is still so rare that several participants in the research accused us of trying to “shuffle the cards.” They say the data are deceptive because they include income from sources other than pensions. But there’s a catch!
Of course, studies of subsets are needed. For example, it is essential to continuously measure the general and occupational pension contributions to older people’s total income. This time, though, we wanted to look at the whole picture and measure the entire range of revenues that end up in people’s pockets.
Is Everything Peaceful and Joyful?
Does this mean that everything is peaceful and joyful and that pension politicians, social partners, and pensioners’ organizations can look in another direction? Not. There is a massive spread of life destinies and incomes in a group as large and heterogeneous as three million people. Some have it tough. Others are in a perfect position. And most people fall somewhere in the middle of the spectrum.
The Genuine Wallets of Pensioners
We conclude that anyone who only looks at wage and pension income to understand the financial situation of older people misses a huge part of many people’s everyday lives. If you want to understand the whole – as a complement to the narrower pure pension studies – you need to study older people’s total income, not just the pension income.
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