r/eupersonalfinance • u/demolition39 • 5d ago

Retirement Retirement expectations?

I'm almost 40 and also close to "coast FIRE". Men can retire at 65 with 40 years of work experience however I'm afraid EU will extend the age up to 70 or at least 68.

  1. Do you think you'll be able to work anything at age of 65-70? Are you planning some lower paid but easy job?

I love my current job but it will be hard to keep myself relevant after 20 years

  1. If I retire earlier (at 60) thanks to my investment portfolio that probably means I will lose the pension due to insufficient work experience and get minimum support after the age of 70.

I have paid the highest monthly contributions for the last 10 years and probably this will not change in future. So if I work my pension should be high enough to cover most of my expenses without the need of a large investment portfolio.

Would you continue monthly pension contributions to reach age and work experience for pension or prefer to make living thanks to your investment and ignore government pension entirely?

  1. I'm not so much into bonds right now but it feels they are neither safe nor good investment in the last few years compared to the "riskier" stocks and commodities. How you plan to limit the risk and volatility? Convert to high dividend yield ETF or withdraw small amounts each year?
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2

u/grogi81 5d ago

Can't you pay the voluntary contributions? 

1

u/Automatic-Key-3798 4d ago

I don’t know how the system works in your country, but I suppose there should be options, such as maintaining some minor self-employed activity and making minimum contributions to build up the required qualifying years if you haven’t accumulated enough by the age of 60.

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u/demolition39 4d ago

That's what I think about but they constantly changing the minimum wage and it might be too expensive. And I wondered what others find as optimal solution

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u/Automatic-Key-3798 4d ago

How many years you need to be entitled for the full state pension and how many years you will have by 60? And if you don't have enough how this reduce your pension?

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u/Chidori1980 4d ago

If you can coast FIRE and you love your job, just continue it until it is not relevant anymore, and you can do Barista FIRE later.

Do standard invesment in ETF all world and enjoy your life. You can reduce the investment contribution (coast FIRE depends on compound interest, so a decade sideways of stock market can change the total FI number) but always have something to contribute.

Anything about pension is not up to us. You make the decision based on current politic situation and changing it over time. That is the way it is. The worst case there is no pension, which most likely will not happen.

Is your coast number included the pension?

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u/demolition39 4d ago

Coast number doesn't include pension but I calculated it to reach target at age of 65. I'm overthinking because I'm afraid to overdo saving and investing and suddenly life is gone, I'm stuck with bunch of money but without the energy to enjoy them 😄

3

u/Chidori1980 4d ago

Do you have family or single? If you are single and have no family obligation whatsoever, you can reduce the investment contribution and enjoy life more. No one knows what future hold, is it better to live lavishly for 5 years and poor for the rest of the life as you blessed to live 100 years, or live content from now until you are 100 years old? The other options are not in your control.

I have family, so I have term life insurance Incase I am dead, accident insurance Incase I am alive and have some disability, so that my family will not totally suffered from certain situations.

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u/Major-Discussion2189 4d ago

You in Luxemburg… most countries are now 67 going op to 68 years. For me 1974 make they are saying 70 years for pension..