Tuesday, 3 November 2015

Post-retirement income

A study covering fifteen EU-countries was published today. The study called Ageing in Europe - Supporting Policies for an Inclusive Society shows enormous differences in post-retirement income across Europe.

In these fifteen member states, more than 50% of households report difficulties in making ends meet, according to new research by SHARE (Survey of Health, Ageing and Retirement in Europe) which looks into Europe's societal challenges of rapid population ageing.
The figure is only around 20% in Sweden, Denmark and the Netherlands.

Read that again: 50% of households in Austria, France, Germany, Belgium, the Czech Republic, Poland, Hungary, Estonia, Slovenia, Spain, Italy and Greece have difficulties making ends meet in post-retirement. In Sweden, Denmark and the Netherlands it is 20% of the households who have difficulties making ends meet in post-retirement. (Norway is probably in there too but with a European Union view, rather than a European Market view, they are excluded from the study.)

Do you know will be your post-retirement income; regardless of when that happens?
Are you ready to fit a lifestyle within that income? Can you live within that budget?

If you include the value of your property in your net-worth (FI-number), you know that your lifestyle will change and that your budget will change (include rent) when/if the property is sold to generate money. Will that be a change you are happy about making or will you be required to make it as you retire?


  1. My house is mortgage-free. I am nervous about including it in my retirement planning. I think the younger generation has less stable employment and will not be buying houses. So I may not be able to sell my house when I retire. I wonder if I will have to sell it and start renting early, before the housing market crashes. I think that will happen.

    1. These are really difficult things to plan. I think that whatever happens that you are smart not including the value of your hose today in your retirement planning. Although mortgage-free (Well done!!) the value is uncertain in the future.