Summer is the right time to make a decision that also lowers income tax

Finally, we can calm down a bit. Phones don’t ring as often anymore, e-mail is no longer bursting at the seams, meetings have thinned out, colleagues are on vacation. When we are no longer haunted by daily chores, it is easier to assess what we have already done in the first half of the year, what we may have neglected and which decisions would be reasonable to make before autumn.

We usually plan a few months in advance without any major problems – we book a vacation, compare offers for apartment renovation, think about changing a car or making major purchases. However, it is much more difficult to look ten, twenty or thirty years ahead, because it seems to us that nothing is “urgent”. This is why long-term goals often remain in the background, even though it is an important aspect of living independently in the future.

A plan is more important than one good decision

With short-term goals, planning is much easier because we usually know how much money we need and by when. Planning for the post-retirement period, however, is different. It is a gradual and purposeful creation of savings for the time after retirement, so in such saving, a long-term perspective is more important than monitoring short-term fluctuations in the financial markets.

This is precisely why it does not make sense to deal with this issue just before retirement. Z long-term savings we begin to create a financial reserve that will allow us to have more options later.

When it comes to long-term saving, time also works

We can influence the financial future especially when we still have enough time ahead of us. PHOTO: Pexels

Of course, in long-term saving we are interested in returns, but sticking to the plan is also very important. The amount we pay should be realistic so that we can pay it regularly. It is not important to chase investments with quick returns, because even small amounts have a big impact if we start early enough. When saving, not only the payments are imposed, but also the returns that are generated over the years on already saved funds.

Saving with a clear purpose

In long-term financial planning, it has supplementary pension insurance (DPZ) special role. It is intended to create an additional source of income for the time after retirement, so it is designed differently than other forms of saving or investing. It is a gradual and purposeful creation of savings for a period of life that can last several decades, so in such saving, a long-term perspective is more important than monitoring short-term fluctuations in the financial markets.

Additional pension insurance at Blue insurance companies is intended for everyone who wants to create an additional source of income in addition to their regular pension. Saving is done gradually, and funds are always managed with the period until retirement in mind and the needs of the individual in different periods of life.

Supplementary pension insurance is intended to create an additional source of income after retirement. PHOTO: Depositphotos

Different strategies for different life stages

When saving for the long term, the time aspect must also be taken into account, how much time is left until retirement. Someone early in their career has decades of savings ahead of them and can more easily absorb short-term fluctuations in financial markets. In a completely different situation is someone who is approaching the end of his career and for whom the stability of already saved funds is more important.

That is why Modra zavarovalnica uses a system of life cycle funds, where the investment policy is automatically adjusted to the age of the saver and the period until retirement. The investment policy thus gradually adapts to the life period of the individual, who does not have to actively monitor the financial markets. More dynamic funds with a higher proportion of equity investments are aimed at younger savers. Over the years, however, the share of more conservative investments has been increasing.

Modra zavarovalnica is the largest operator of pension funds in Slovenia and manages Blue umbrella pension fund for employees in the economy and the self-employed and The umbrella pension fund of civil servants for employees in the public sector. Both operate on a life-cycle basis and include a dynamic, prudent and guaranteed sub-fund that adjusts over the period until retirement.

Tax relief as a concrete advantage

When it comes to long-term saving, timing and consistency are often more important than looking for short-term returns. PHOTO: Depositphotos

Payments to additional pension insurance (DPZ) at Modra zavarovalnica are taken into account when reducing the income tax base within the limits set by law. This is the only form of saving that is encouraged by the Republic of Slovenia with significant tax reliefs, which allows an individual to divert part of the funds that would otherwise be earmarked for tax payment into their long-term savings.

First steps for a safer future

Modra zavarovalnica provides additional pension insurance with tax relief and asset management, which automatically adjusts to the period until retirement. PHOTO: Depositphotos Photo by Depositphotos

Many people put off setting long-term financial goals because they feel it is a complicated process, but in reality, the first step is very simple. Additional pension insurance we can also conclude an agreement online.

• Consider how much monthly money you can set aside for long-term savings.
• Upon inclusion in supplementary pension insurance, the assets are included in the life cycle fund, which is adjusted to the period until retirement.
• Upon retirement, the saved funds begin to be paid out in the form of an annuity. Use it online calculator and check how much you would save with the selected amount.

Perhaps this summer is a good moment to check whether we have already taken the first step for our financial future.

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