Czechs are saving for retirement on the “stove”, they do not have enough information about investment options

The dream of financial stability in retirement is complicated by poorly chosen products and a short investment horizon. Effective debt financing options with the support of a long-term investment product. but you don’t have enough information about him. This is the result of a recent survey by OVB Allfinanz. Without the advice of an expert, you often combine inefficiently, do not use the appropriate composition of financial products or do not use the full range of financial incentives and tax deductions, hard research. Taxes are a very powerful tool that can be used to make it easier to accumulate enough capital (disputes) for retirement.

Part of me realizes that without the supplementary pension insurance product, they won’t be able to live a happy life in the future. It shows people’s responsible approach to their own future. irok the public is beginning to realize that it is not appropriate to rely on the state pension system, and that every worker should create his own disputes that will ensure a happy life in the future, to Richard Bene, commercial editor of the OVB Allfinanz company.

Hey, those who are determined to build private pension disputes, but find a number of complications. Unfortunately, they do not know how to choose suitable products. 47% of those asked about savings accounts, 24% even put aside their pension for a pension only in a bank account and 19% for a construction loan. Not one of these tools can help to accumulate the necessary amount of capital in the long term, not even against inflation, and people therefore pay more for the value of their money than to spend it, added Richard Bene. When we add to this the fact that half of people do not even know when they will reach retirement age, and eight out of ten have never tried to see their retirement age, they are frustrated and disappointed when they retire late, explains Richard Bene.

DIP: Mlo means a product with significant advantages

Since this summer, Stt has divided the options, which can still be connected to St, with a long-term investment product (DIP). This includes both new and existing financial products that allow the creation of disputes on st. It also significantly reduces the complexity in which you can invest with the benefit of the crowd, and the possibility of combining individual products. In this way, the employer can contribute to the DIP, similar to the life continuous or supplementary pension scheme, up to 50 thousand crowns a year in the sum of all three products (DIP, P, DPS).

but he does not know the new DIP tool in essence, as the survey by OVB Allfinanz shows. According to him, only 15% of respondents have enough information about this product. We actively communicate with our clients the options that DIP offers, because we are convinced that its use, together with the option to withdraw and 48 thousand crowns from the deposit tax for one time, is similar to an excellent tool for saving on a pension, added Richard Bene. Only if I fully use and reinvest the funds returned from taxes, I am afraid to make an additional half a million crowns extra. (note: see sample no)

A lot of people rely on the advice of experts when choosing suitable products and tools for connection. They approach each client individually and know how to prepare an appropriately selected portfolio product for maximum income, regardless of how long the relationship will be. According to the survey, 52% of respondents would seek advice from an expert when planning investments with the goal of saving for retirement. On the other hand, 30% of respondents do not know whether they would use professional help in the field of finance, or even explicitly do not want to use this service (17%). A consultation with an experienced financial advisor will help the client to orientate himself in the complex topic of retirement. A properly developed portfolio of investments is more effective and allows clients to evaluate more than investments in a single product. It is a code that you are an intuitive person when making decisions about your finances, which often leads to five decisions, to Vojtch majer, product analyst for investments and pensions of OVB Allfinanz.

The first effect has a compound year, but it can be done at any time

As a model situation, we can take the case of a student who starts investing in DIP at the age of 20 with only a small deposit of 500 crowns. Until the age of 65, such an investor gradually invested a total of 270 thousand crowns in the product in small increments. Thanks to the compounding effect, this hunter will retire with 1.9 million crowns at an expected 7% rate of return, Vojtch Majer explains.

But this certainly does not mean that DIP is a tool only for young people. The advantage of this product is its great variability and relatively low tax rate, says Vojtch Majer.

On a further model basis, OVB shows how to use DIP to the maximum. A 40-year-old client decided to invest through DIP 4 thousand crowns, until the retirement age of 25 years. In the calculation, it is possible with the average employer’s contribution of about 1,200 crowns per month. The final amount will be 4,212,000 crowns + the value of reinvested tax levies. The annual tax liability is 7,200 crowns (in the case of a 15% tax rate) or 11,040 crowns (in the case of a 23% tax rate). The client will regularly invest these funds for At an average rate of 7%, this will mean that for her at the age of 65, instead of 180,000 crowns, 455,393 crowns will be deducted from these taxes (in the case of a 15% tax rate), or instead of 276,000 crowns, it will be 698,269 crowns (in ppad 23% tax rate).

We recommend working with taxes that people receive back for DIP in the form of a tax discount. In this way, it is possible to increase the total value, which will be returned to retirement, even half a million crowns, Vojtch Majer concluded.