RGI INVESTMENT LTD

Is your early retirement possible?

„Could you accumulate the reserves to do that?“

Easy question: doing it requires focus and planning.

Early Retirement RGI

How exactly could this be done?

      Start by answering these questions:

  • What are my existing public and private pension schemes and when will they be paid out?
  • At what age do I want to retire and how many years is that from now?
  • What amount am I now able to save each month?
  • How do I compensate for inflation over the years before and during my retirement?

Do not assume that you will need less money in retirement than you spent per month when you were working. Experience shows that usually people require at least the same amount to keep the same standard of living.

Why is that? There are three simple reasons:

  1. Enjoying retirement: you will have more free time than before and more opportunities to spend money on travel, new hobbies and purchases.
  2. Inflation: the further away your planned retirement the more likely it is that you will need a higher amount of money per month due to inflation, because 2.500EUR today, has the same value as 4.120EUR in 20 years (2,50% inflation rate).
  3. Health care: with increasing age many people find themselves in need of more medical attention and the costs that go with that.

When you have answers draft a plan.

Suppose your government pension will be 2,000EUR. You set 55 as your target age to retire and your target amount as 5,000EUR per month for 25 years. You are planning to have an additional 3,000EUR per month available from savings over a period of 25 years, meaning that you must have saved 900,000EUR at the age of 55. Inflation and interest payments have not been factored in and the figure will probably be in excess of that.

When you are clear about this amount careful planning and calculation is required to find a savings plan that will give you the necessary return on investment and long-term security.

Sound advice and a yearly analysis of changing circumstances and progress made is highly recommended. We are here to help and would be happy to schedule a free initial meeting to discuss your circumstances and possibilities at a time to suit you. Our advisors have many years of experience in retirement planning and are fluent in German or English.

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