Friday, July 1, 2016 - 10:55
Concerns rise for future retirees' pensions
Nibud is concerned about the financial situation of future pensioners. The combination of the rising cot 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 pension. The ever increasing number of freelancers and flexible employment plays 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 cost 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 planing. The institute also urges the government to enable customization in pension plans. And employers should take n active role in financial planning for their employees.