Why and how can I create capital for my retirement?

To enjoy the most relaxing retirement possible it's essential to prepare well in advance, particularly from a financial point of view. How much do you need for a comfortable retirement? It all depends on your plans and lifestyle, but in this article we would like to present several options for investing to top off your retirement.

Changes to the retirement age: what's in it for you?

In 2023, France's pay-as-you-go pension system undergoes a further change. This extends the length of service required to qualify for a full pension under the general scheme.

The reform will have a different impact depending on your professional situation. You'll be more affected if you don't have a full career in France —if you work or have worked abroad, for example.

Depending on your personal and professional plans, this reform may therefore represent a loss of earnings, but at the same does emphasise the importance of preparing for your retirement.

How can you prepare financially for your retirement?

One of the best ways to prepare for a comfortable retirement is to maintain diversified sources of income, even after the end of your career. Depending on your job, you may already have access to one or more retirement supplement schemes. For example, if you are a private-sector employee, you contribute to the Agirc-Arrco points-based supplementary pension system. Since 2020, some employers have also been offering retirement savings plans (PER), on an optional or compulsory basis. Individual subscriptions are also possible, such as the PERs mentioned above and ordinary securities accounts (CTOs) like our Scalable Broker.

What's the difference between investing and saving for retirement?

The main difference between savings and investment is their different timeframes.

Savings are short-term investments that are used to store liquid assets for a range of situations, both planned and unplanned (a trip, a major purchase, renovations, etc.). The advantage of savings is the easy access to funds. If your savings are in a current account, for example, you can get your money back at any time, without any fees or loss of value. With a long-term vision, however, savings will on average offer a lower return than investment.

The investment is intended to prepare for major expenditure in the longer term, such as a property purchase. Retirement is one of the long-term prospects for which investing makes sense. By defining an investment plan and feeding it over an extended period of time, your capital can be multiplied significantly. But remember: only invest money you know you won't need in the short term! Indeed, although it is always possible to withdraw your invested money, fees may be associated with this withdrawal, and a loss of capital linked to the state of the market is also possible.

Is it too late to start investing for your retirement at 35?

It's never too late to start investing! And, whatever your age, it's up to you to define an investment plan that suits your needs. Ask yourself: how much do you think you need for a comfortable retirement? And what resources do you have at your disposal? Perhaps you've just come into some unexpected money, which could provide a good basis for investing. You can also decide to convert part of your income or savings into an investment that can be used to top off your retirement when the time comes.

Want to start investing today? Discover Scalable Broker and take control of your financial future in just a few clicks.