5 Tips for Preparing for Retirement


While for some, retirement is synonymous with freedom, for others it is synonymous with anxiety, as the transition from active to passive life is not always easy.

There is no age to think about retirement. However, in order to prepare it serenely, it is better to anticipate. So these are 5 simple tips to prepare for retirement.

Start early to benefit from better preparation for retirement

Financing your retirement means preparing for a period in your life that is full of changes and can sometimes be difficult to manage. That means the earlier you start, the better prepared you will be.

So preparing for retirement is a long-term project. That’s why you need to start preparing as soon as possible to have peace of mind when the time comes.

Taking stock of your situation, determining your goals, and trying to anticipate your future needs when you retire will help you better determine the additional income you need to make the most of your retirement.

Save regularly

In order to obtain additional income after retirement, it is important to be able to save first to invest. That’s why we recommend that you start by saving regularly.

Once you have paid off your debts, if any, and are on a budget, you can set aside a certain amount every month (even if it is only a small amount).

The idea here is not to radically change your lifestyle to be able to save but to adopt better financial habits to be able to put aside a certain amount regularly. It will then be easier to invest to reach your financial goals such as preparing for retirement.

Choose the right financial investment to benefit from a good income supplement

There are various financial products that can help you prepare for retirement by obtaining a certain amount of additional income.

You can take advantage of employee savings or use individual products such as the Plan d’Epargne Retraite (PER). It is also possible to use investment vehicles such as the Plan d’Epargne en Actions (PEA) or the Assurance-vie multi-supports for example. You can also actively invest in the financial markets or invest in real estate for example.

If you want to choose the best solution for your situation and your goals, you should therefore be well informed about these different products. Since 2019, the PER has become increasingly popular with French people who want to prepare for their retirement.

To subscribe to the right solution, the best thing to do is to use a PER simulator that allows you to calculate your supplementary pension like the PERlib simulator. The latter also allows you to subscribe directly to the best solution for you.

Diversify your investments and your investment solutions

To prepare for your retirement, it is important not to rely on a single saving or investment solution.

You must therefore learn to diversify the financial products you use according to the evolution of your professional situation, but also your personal situation.

It is not uncommon for certain events or developments, whether personal or professional, to have a major impact on your life, such as the arrival of a new child, a divorce, or a total change in your career.

Having several flexible solutions to prepare for retirement could be a significant advantage.

Take into account the taxation of your savings products

To choose the best investment solution to prepare for your retirement, it is also important to take into account the taxation of the savings products you have chosen.

There are indeed certain investment or savings solutions that are subject to very heavy taxation. What may seem like an attractive option at the outset can become a real burden.

That’s why you need to find out about the tax optimization solutions offered by the various products available before committing yourself.