pair of Niels Saelens
published on Wednesday November 27, 2024 has 18:59 •
5 min read
Two thirds of Belgian self-employed people over 45 believe that they are not sufficiently financially prepared for their retirement, according to a survey conducted by life insurer NN. A lack of financial knowledge is among the top reasons freelancers struggle to prepare their finances for retirement.
What you need to know: according to the study on longevity carried out by NN, two thirds of Belgian self-employed people over 45 do not feel ready for retirement, and several factors explain this.
- For starters, only 29% of freelancers have a clear vision of their life after their career.
“This lack of clarity makes it more difficult to develop focused plans, leading to less focus on retirement planning and less saving,” says Colin Sanders, longevity expert at NN. - In addition, many self-employed people lack the financial knowledge to prepare for retirement. Although 47% say they have enough knowledge to create a retirement plan, only 35% know how much they actually need to save to live comfortably.
“This lack of knowledge is often combined with the absence of clear objectives, which further complicates the situation,” adds Sanders. “Self-employed people without a clear vision of their future also tend to have less financial knowledge, which traps them in a vicious cycle that hinders their preparation for retirement. »
The details: this insufficient preparation for retirement leads to low optimism about their future living conditions.
- Only 25% of self-employed people expect an “excellent” retirement, while 27% fear living in poor conditions once they retire.
- However, 69% of self-employed people express a strong desire for financial freedom to achieve their desires during retirement.
- “Our approach to retirement has a major impact on our expectations for the future. It is crucial to think about the lifestyle and activities you want to pursue in retirement. A clear vision of your life after work not only strengthens your preparation, but also makes your expectations more realistic,” says Sanders.
Another point: NN’s study shows that self-employed people who are well prepared for their retirement rely on different sources of income to ensure their financial comfort.
- In addition to the legal pension, 46% of self-employed people plan to supplement their income through their savings and investments (dissaving). 38% rely on rental income and 37% on interest and dividends. Furthermore, 27% mention income from a professional activity.
Tips for a peaceful retirement
Explanations: Colin Sanders offers some tips for effective retirement planning as a self-employed person.
- Define your ideal retirement: What does a successful retirement mean to you? Think about the standard of living you want to maintain and the financial freedom you desire.
- Improve your financial knowledge using free resources like blogs, podcasts or talking to your accountant, broker or banking advisor. Also share your experiences with other freelancers to get inspiration from their methods.
- Evaluate your retirement needs: determine the total amount needed to reach your retirement goal.
- Take stock of your current savings: How much have you already saved?
- Set your savings goal: How much do you need to save each month to meet your needs?
- Save regularly and follow your plan: stick to your savings goals and adjust your plan if necessary.
Do you want to know where you stand compared to your independent colleagues? The tool scan of independents from NN allows you to compare your pension savings to those of other self-employed people in Belgium.
Example : Let’s say you want to have 2,500 euros per month in retirement and expect to receive 1,500 euros in legal pension.
- This represents a shortfall of 1,000 euros per month, or a total of 300,000 euros for 25 years of retirement.
- If you have already saved 60,000 euros, you still have to accumulate 240,000 euros. From the age of 47, this means saving around 1,000 euros per month to reach your goal, without taking into account inflation or investment returns.
