• About us
    • Who we are
    • Mission
  • Contacts
  • English
    • Português (Portuguese (Portugal))
    • Español (Spanish)
    • Français (French)
  • Login
  • Register
Investorpolis
Advertisement
  • Home
  • Investing Series Guide
    • All
    • I. Goal Based Investing
    • II. Compounding & Inflation
    • III. Assets Risks & Returns
    • IV. Efficient Diversification
    • IX. Sustainable Investing and ESG
    • V. The Investor
    • VI. Assets and Investments
    • VII. Index Funds
    • VIII. Successful Investing
    • XI. Other Topics
    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

    Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

    Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

    Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

    Maximize time invested in the stock market instead of market timing: Part 2. Impossibilities and losses (cont.)

    Maximize time invested in the stock market instead of market timing: Part 2. Impossibilities and losses (cont.)

    Maximizing time invested in the stock market instead of market timing: Part 1 – Biases and losses

    Maximizing time invested in the stock market instead of market timing: Part 1 – Biases and losses

    ESG Investing Series: Part 9 – Developments and models of corporate governance regulation in the world

    ESG Investing Series: Part 9 – Developments and models of corporate governance regulation in the world

    Trending Tags

      • I. Goal Based Investing
      • II. Compounding & Inflation
      • III. Assets Risks & Returns
      • IV. Efficient Diversification
      • V. The Investor
      • VI. Assets and Investments
      • VIII. Successful Investing
      • IX. Sustainable Investing and ESG
      • X. Kits and Tips
      • XI. Other Topics
    • Wealth and Investing
      • All
      • Investing
      • Wealth
      How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

      How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

      Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

      Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

      Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

      Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

      Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

      Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

      Outlook 2023: Part 2 – Investment losses in 2022 cost so much that sometimes we forget about previous gains

      Outlook 2023: Part 2 – Investment losses in 2022 cost so much that sometimes we forget about previous gains

      Outlook 2023: Part 1 – 2022 was a bad year for investments, but we can’t lose the medium and long-term perspective

      Outlook 2023: Part 1 – 2022 was a bad year for investments, but we can’t lose the medium and long-term perspective

      Trending Tags

        • Investing
        • Wealth
      • Retirement & Savings
        • All
        • Retirement
        • Savings
        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: Part 1 – Overview – A backwards view

        Retirement Series: Part 1 – Overview – A backwards view

        How many years do our public or social pensions last?

        What is the replacement rate of retirement pensions?

        How many years will we live in retirement?

        Planning for a good financial life in retirement

        Trending Tags

          • Retirement
          • Savings
        • Tools
          • All
          • Calculators
          • Publications
          • Sites and apps
          Morningstar Rating for Funds

          Morningstar Rating for Funds

          Morningstar’s European Active/Passive Barometer

          Morningstar’s European Active/Passive Barometer

          Morningstar’s U.S. Active vs. Passive Barometer

          Morningstar’s U.S. Active vs. Passive Barometer

          The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

          The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

          OECD Corporate Governance Factbook 2021

          OECD Corporate Governance Factbook 2021

          G20/OECD Principles of Corporate Governance, 2015

          G20/OECD Principles of Corporate Governance, 2015

          Trending Tags

          • calculators
          • Calculators
          • Publications
          • Sites and apps
        • More
          • All
          • Best of
          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Trending Tags

            • Best of
            • Reviews
            • Snapshots
            • Others
          No Result
          View All Result
          • Home
          • Investing Series Guide
            • All
            • I. Goal Based Investing
            • II. Compounding & Inflation
            • III. Assets Risks & Returns
            • IV. Efficient Diversification
            • IX. Sustainable Investing and ESG
            • V. The Investor
            • VI. Assets and Investments
            • VII. Index Funds
            • VIII. Successful Investing
            • XI. Other Topics
            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

            Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

            Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

            Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

            Maximize time invested in the stock market instead of market timing: Part 2. Impossibilities and losses (cont.)

            Maximize time invested in the stock market instead of market timing: Part 2. Impossibilities and losses (cont.)

            Maximizing time invested in the stock market instead of market timing: Part 1 – Biases and losses

            Maximizing time invested in the stock market instead of market timing: Part 1 – Biases and losses

            ESG Investing Series: Part 9 – Developments and models of corporate governance regulation in the world

            ESG Investing Series: Part 9 – Developments and models of corporate governance regulation in the world

            Trending Tags

              • I. Goal Based Investing
              • II. Compounding & Inflation
              • III. Assets Risks & Returns
              • IV. Efficient Diversification
              • V. The Investor
              • VI. Assets and Investments
              • VIII. Successful Investing
              • IX. Sustainable Investing and ESG
              • X. Kits and Tips
              • XI. Other Topics
            • Wealth and Investing
              • All
              • Investing
              • Wealth
              How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

              How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

              Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

              Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

              Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

              Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

              Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

              Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

              Outlook 2023: Part 2 – Investment losses in 2022 cost so much that sometimes we forget about previous gains

              Outlook 2023: Part 2 – Investment losses in 2022 cost so much that sometimes we forget about previous gains

              Outlook 2023: Part 1 – 2022 was a bad year for investments, but we can’t lose the medium and long-term perspective

              Outlook 2023: Part 1 – 2022 was a bad year for investments, but we can’t lose the medium and long-term perspective

              Trending Tags

                • Investing
                • Wealth
              • Retirement & Savings
                • All
                • Retirement
                • Savings
                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: Part 1 – Overview – A backwards view

                Retirement Series: Part 1 – Overview – A backwards view

                How many years do our public or social pensions last?

                What is the replacement rate of retirement pensions?

                How many years will we live in retirement?

                Planning for a good financial life in retirement

                Trending Tags

                  • Retirement
                  • Savings
                • Tools
                  • All
                  • Calculators
                  • Publications
                  • Sites and apps
                  Morningstar Rating for Funds

                  Morningstar Rating for Funds

                  Morningstar’s European Active/Passive Barometer

                  Morningstar’s European Active/Passive Barometer

                  Morningstar’s U.S. Active vs. Passive Barometer

                  Morningstar’s U.S. Active vs. Passive Barometer

                  The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

                  The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

                  OECD Corporate Governance Factbook 2021

                  OECD Corporate Governance Factbook 2021

                  G20/OECD Principles of Corporate Governance, 2015

                  G20/OECD Principles of Corporate Governance, 2015

                  Trending Tags

                  • calculators
                  • Calculators
                  • Publications
                  • Sites and apps
                • More
                  • All
                  • Best of
                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Trending Tags

                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  No Result
                  View All Result
                  Investorpolis
                  No Result
                  View All Result
                  Home Retirement & Savings Retirement

                  How do retired people live?

                  23 de December, 2019
                  in Retirement, Retirement & Savings
                  Reading Time: 7 mins read
                  0 0
                  0
                  Share on FacebookShare on Twitter

                  They want to make dreams come true, devote themselves to pure leisure with family and friends, and prepare for managed care in old age

                  Current retirees receive a pension of 65% or 60% of the last net salary in the countries of the European Union and the OECD, respectively

                  The main sources of pensioner’s income are social pensions followed by occupational pensions

                  Current retirees have incomes close to the national average

                  Retirement brings a loss of standards of living in many countries, especially for Europeans

                  There are many retirees living in the heels of running out of money to live and pensions are the biggest concern over 10 years of people in the OECD

                  The vast majority of people have low individual savings for retirement

                  There are major fears that future generations do not have the same pensions and that reform will be increasingly

                  There are great fears that future generations do not have the same pensions levels and that live in retirement will become increasingly worse

                  They want to make dreams come true, devote themselves to pure leisure with family and friends, and prepare for managed care in old age

                  Normally, we go through 3 stages in our retirement, each corresponding to different and specific spending needs.

                  In a first phase, we spend more, because we want to enjoy the retirement freedom, making the trips we always dream of, renovating the house to feel better and helping our children in raising their families.

                  In a second phase, we spend less, because we wish to enjoy our renovated home and be close to family and friends, having a regular social activity, and supporting small maintenance expenses.

                  In a third and final phase, spending rises substantially as we enter old age, especially with the expense and health costs and managed care we need.

                  Imagem relacionada

                  Current retirees receive a pension of 65% or 60% of the last net salary in the countries of the European Union and the OECD, respectively

                  The problem that may arise is that we don’t have the money to enjoy the retirement for what we’ve worked a lifetime.

                  There are countries where social protection system is strong and the average rate of replacement of salaries for pensions in net terms of taxes is high (quotient between pension and last salary, both in net terms), standing above 80%, among which includes Portugal. 

                  However, this rate is 65% for the average of European Union countries at 28, from just over 60% for the OECD countries average and less than 50% for the US.

                  These are average rates, i.e. average pensions and average wages, which is quite different when we analyse specific situations; normally, as these systems have a redistributive component, the replacement rate for higher wages is lower than average.

                  In some of these countries, the situation is mitigated by private (or non-public) pension systems, which may have a more or less mandatory scheme, such as the US and the UK.

                  However, we know that these private regimes are generally applied or have greater penetration from households with higher income levels than in the lower ones. Whether it is characteristic or nature of its own and diverse of employability, either by decision and will of the worker who when given the option prefers not to discount or discount very little for such systems.

                  The main sources of pensioner’s income are social pensions followed by occupational pensions

                  The main sources of income for retired people are social pensions, followed by private pensions.

                  In the US, Canada, UK, Central Europe, Nordic countries and Australia, incomes from capital are very relevant. In many countries, from the richest to the poorest, there is a percentage of the population still working after the age of 65.

                  Social pensions account for more than 50% of income in most countries, and even more than 75% in some European countries, such as Hungary, Luxembourg, Austria, Finland, Ireland, the Czech Republic and Portugal. 

                  Occupational pensions are very relevant in countries such as the Netherlands, UK and Switzerland.

                  Capital income is important in France, Denmark, New Zealand and Canada.

                  Finally, there are countries where work by the elderly still has a great expression, especially the U.S., Japan, Chile, Mexico and South Korea.

                  Current pensioners have incomes close to the national average

                  The average incomes of retired people are in line with those of the working population in the majority of OECD countries:

                  Global-Insurance-Market-Trends-Cover.indd (oecd.org)

                  Retirement brings a loss of standards of living in many countries, especially for Europeans

                  Dutch bank ING recently conducted an inquiry into the quality of life of retirees  in the various geographies in which it operates in Europe, the US and Australia:

                  Only in Luxembourg, the Netherlands, the UK and the US, did a significant proportion of retirees say that their income was enough to maintain the same standard of living they had when they worked.

                  Instead, a significant proportion of retirees say they have lost their living standards in countries such as Germany, France, Belgium and Austria, i.e. in many of most developed European countries.

                  There are many retirees living in the heels of running out of money to live and pensions are the biggest concern over 10 years of people in the OECD

                  Surveys in the US show that retiree’s greatest fear is running out of money, whether to support health care, to address adverse market conditions or simply to sustain the predictable increases in its longevity.

                  A recent OECD study revealed that the biggest long-term concern of people (next 10 years) is with their lives in retirement and old age:

                  Financial security in old age was selected as the main concern in the various OECD countries for between 60% and 80% of respondents.

                  The vast majority of people have low individual savings for retirement

                  In the US, even people close to retirement age have very low accumulated savings, with median retirement accounts savings of $17,000.

                  Nos EUA, mesmo as pessoas próximas da idade da reforma têm poupanças acumuladas muito baixas, tendo metade das pessoas saldos médios de $17,000 em contas reforma.

                  There are major fears that future generations do not have the same pensions and that retirement life will be increasingly worse

                  In the OECD countries, despite the increase of money spent on Social Security, social security benefits in relation to the per capita income of the active population per beneficiary have been decreasing.

                  It is expected that this reduction will be accentuated in the near future due to the combination of the effects of demographics with those of social security sustainability

                  So, it’s not surprising that fears about living a comfortable retirement is greater for non-retired than retired people, as this recent study in the US showed:

                  Previous Post

                  Retirement is the main financial objective, but there are other

                  Next Post

                  The goal-based planning and investing process in practice

                  Investadmin

                  Investadmin

                  Related Posts

                  Retirement Series: How much money do we need to live through retirement?
                  Retirement

                  Retirement Series: How much money do we need to live through retirement?

                  11 de July, 2022
                  Retirement Series: Part 1 – Overview – A backwards view
                  Retirement

                  Retirement Series: Part 1 – Overview – A backwards view

                  17 de May, 2022
                  Retirement

                  How many years do our public or social pensions last?

                  4 de April, 2020
                  Retirement

                  What is the replacement rate of retirement pensions?

                  4 de April, 2020
                  Retirement

                  How many years will we live in retirement?

                  4 de April, 2020
                  Retirement

                  Planning for a good financial life in retirement

                  22 de March, 2020
                  Next Post

                  The goal-based planning and investing process in practice

                  Leave a Reply

                  Your email address will not be published. Required fields are marked *

                  Trending

                  How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

                  How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

                  2 de March, 2023
                  Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

                  Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

                  17 de February, 2023
                  Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

                  Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

                  17 de February, 2023
                  Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

                  Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

                  16 de February, 2023
                  Investorpolis

                  We developed this blog because we believe that only a small learning effort is needed to make a big change in the decisions and results of our investments and financial assets.

                  Main categories

                  • Investing Series Guide
                  • Wealth and Investing
                  • Retirement & Savings
                  • Tools
                  • More

                  Newsletter

                  Sign to our mailing list to receive updates direct to your inbox!

                  *We don’t spam

                  • Privacy Policy
                  • Cookie Policy
                  • Contacts

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  • pt-pt Português
                  • fr Français
                  • es Español
                  • en English
                  • Home
                  • Investing Series Guide
                    • I. Goal Based Investing
                    • II. Compounding & Inflation
                    • III. Assets Risks & Returns
                    • IV. Efficient Diversification
                    • IX. Sustainable Investing and ESG
                    • V. The Investor
                    • VI. Assets and Investments
                    • VII. Index Funds
                    • VIII. Successful Investing
                    • X. Kits and Tips
                    • XI. Other Topics
                  • Retirement & Savings
                    • Retirement
                    • Savings
                  • Wealth and Investing
                    • Investing
                    • Wealth
                  • Tools
                    • Calculators
                    • Publications
                    • Sites and apps
                  • More
                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  • About us
                    • Who we are
                    • Mission
                  • Login
                  • Sign Up
                  • Cart

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  Welcome Back!

                  Login to your account below

                  Forgotten Password? Sign Up

                  Create New Account!

                  Fill the forms bellow to register

                  All fields are required. Log In

                  Retrieve your password

                  Please enter your username or email address to reset your password.

                  Log In
                  We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
                  Cookie configurationCookie PolicyAcceptReject
                  Manage consent

                  Privacy Overview

                  This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
                  Advertisement
                  Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
                  Analytics
                  Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
                  Functional
                  Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
                  Necessary
                  Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
                  Others
                  Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
                  Performance
                  Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
                  SAVE & ACCEPT

                  Add New Playlist

                  Are you sure want to unlock this post?
                  Unlock left : 0
                  Are you sure want to cancel subscription?