Future Retirees’ Pensions: A Matter of Concern

By: Together Abroad 08-08-2016 12:31 PM
Categories: * Daily employment news,

The financial situation of future pensioners is uncertain according to the National Institute for Budget Information (Nibud).
The combination of the rising cost of living and the current group of freelancers and entrepreneurs building less pension, leads the institute to expect that the current under-65-year-olds will soon have a quarter too little pension, ANP reports.
There are a number of factors contributing to current workers not always building up enough pensions. The ever-increasing number of freelancers and flexible employment plays a big role, as does the increase in divorce.
According to Nibud, it is a common misconception that people spend less after they retire. Elderly people often spend more on all kinds of things, including domestic help, heating bills and subscriptions. Healthcare in particular costs elderly people more than young people, and Nibud expects these costs will only increase.
The institute is particularly concerned about the group of soon to be pensioners who rent or have mortgages that are not yet paid off. “They still have high housing costs after retirement and the question is whether they realize it”.
Nibud advises current workers to focus more on long term financial planning. The institute also urges the government to enable customization in pension plans. And employers should take an active role in financial planning for their employees.

Source: http://www.nltimes.nl

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