Public pension is real, but it's getting smaller for each person. You can't rely on it alone if you want to live well in retirement.
The demographic problem
There are fewer young people working than retirees. That means each worker funds the retirement of more pensioners. This makes pensions smaller.
Future numbers
If you retire today with a 1500 euro pension, someone retiring in 30 years will get less (in real terms).
Pension plans: your solution
Saving in a pension plan for 40 years gives you serious backup. It's not your only pension, but it's a good cushion.
Simulating the numbers
Save 200 euros monthly in a pension plan for 40 years. With compound interest, you have 300,000+ euros. You draw 600 euros monthly from it.
Combined with public pension
Public pension: 1200 euros.
Income from pension plan: 600 euros.
Total: 1800 euros. That's livable.
What experts say
You need 80% of what you earn now to live in retirement. If you earn 2000 euros, you need 1600 in retirement.
Start as early as possible
At 25: 200 euros monthly for 40 years.
At 45: 200 euros monthly for 20 years.
The first person has way more money. Time is magical.
It's not optional
It's not a luxury. It's a necessity. Plan it now.