JobatNews on pensions (reforms) are discussed regularly. Enjoying old age comfortably – and not too late – is important to many people. But how large does your savings account need to be to benefit from retirement with the same standard of living as when you were working? Jobat.be has done the calculations.
How is the pension calculated?
In summary, three factors play an important role: how many years you have worked (where the periods in which you received benefits also count), your gross salary (fixed salary, end-of-year bonus and extra-legal benefits on which you pay social benefits ) contributions, such as mobile phone) and your family situation.
The pension service calculates how much you earned for each year you worked. They revalue that amount by year and then divide it by the number of years in your career, for a full pension of 45. They then multiply that amount by 60%, unless you are married to someone who receives a pension very low. – then multiply them by 75%. The sum of all pension payments constitutes your annual pension.
How much pension will you receive afterwards? Here’s how you calculate it yourself.
What will be the difference with your net salary?
You approximately calculate your statutory pension by multiplying your average salary by 60% if you have worked for 45 years. To continue living comfortably it is almost necessary to put money aside over the years. Here’s how you protect yourself from that drop in income.
For example, a person with an average gross salary of 3,500 euros receives a pension of approximately 2,100 euros gross. However, a retiree does not always need as much income as before. For example, your mortgage may have already been paid off. Other factors also make every situation different. Let’s say someone needs 80% of their salary to live comfortably, in this example it amounts to 2,800 euros, which is 700 euros more than the pension. Since here it is calculated with the gross pension, from which the ZIV contribution, the solidarity contribution and the withholding tax can be deducted, the minimum is 700 euros.
From 2030 the statutory retirement age will be 67. If you compare these figures with the average life expectancy of around 82 years, you know that an employee will have to live off their pension for an average of fifteen years. If you live to age 97, for example, the amount you need to put aside will double.
In total: at least 700 euros of savings per month, for fifteen years: this is equivalent to a savings account of at least 126,000 euros. If you live to 100 years old, the minimum is 277,200 euros. Of course, it is advisable to set up an even larger fund for unexpected expenses. Another good rule of thumb is to set aside 85 times your net salary. For example, for a net salary of 3,000 euros, it is 255,000 euros.
Reading tip: How does part-time work affect your pension?
Which extra-legal conditions are useful for supplementing your pension and which would you prefer to exchange for a higher gross salary?
Employees are increasingly allowed to determine their own extra-legal conditions. This way you can tailor your salary package to your needs and desires. An extra-legal benefit can be more fiscally attractive than a higher gross salary: you’ll have almost the same net income as someone who earns much more gross, while enjoying food stamps or a self-stipend, for example.
How much are your fringe benefits worth in euros? We did the calculation.
But if you have a higher gross salary, not only will you have more paid holidays and a better 13th month pay, but your pension amount will also be higher. For your pension there is only one legal extra that is more advantageous than a higher gross salary. This is a group insurance where your employer saves for your pension. You pay taxes only when you retire and receive the amount.
Having a good salary is therefore important during and after your professional career. Compare your score in this area using the box below.
This content contains cookies from social media or other external platforms. Because you have disabled these cookies, this content remains hidden. Accept cookies from social media to still view content.
These are the ten best paid jobs in Belgium
Brussels pays better, but there are also significant differences between the Flemish provinces
Employee or public employee: who earns more?
This article was brought to you by our partner Jobat.be.
Jobat.be is an expert site focused on jobs, vacancies and careers.
Free unlimited access to Showbytes? Which one can!
Log in or create an account and never miss a thing about the stars.
Yes, I want free, unlimited access
2024-01-12 05:40:00
#retirement #complete #comfort #good #rule #thumb #set #net #salary #times #guide