How much this year stock market race has affected the pension capital varies widely. But generally it hits harder against high income earners who have a large share of their future pension in the occupational pension, and who have also invested a large share in funds or shares. It suits, for example, many ten-tag earners, people who earn more than ten income base amounts, and who have left the collectively agreed solutions to take personal responsibility for their occupational pension. But the same applies to private savings exposed to the stock market. How you should handle the decline in value varies depending on how many years you have left until retirement, according to Mattias Munter, pension expert at Skandia. “The most important thing to keep in mind when planning for your pension is that the money should be distributed over a long period of time,” he says. For most people who are retiring now, only a small part of the pension money has been exposed to the stock market, and thus lost value significantly this year. “The occupational pension for that group is largely benefit-based, a certain percentage of the final salary,” says Mattias Munter. But there are exceptions. Many of them are so-called ten-taggers, people with high incomes who have taken over responsibility for the investments themselves. And for high earners, the occupational pension can account for half of the total pension, or even more. “The more exposure you have had to the stock market, the more you need to review.” You must not forget that the money should be enough for the rest of your life, that even on retirement you should have a 20-year perspective on the savings. “You shouldn’t place everything at low risk just to start living on parts of the money.” This also means that there is plenty of time to recover from the stock market crash. But having everything in shares is not a good idea either, Mattias Munter believes. He thinks that a 60-40 distribution, where 60 percent is risk investments, is a good starting point for those who are about to retire. With traditional management, the risk investments are spread over other assets such as real estate and infrastructure alongside stocks. Those who manage their own investments should also make sure to have a spread between sectors in their funds, he points out.A question to ask for those who are on the brink of retirement is whether to use the right to move and change the form of administration. “If you have mutual fund insurance where you manage a lot of the investments yourself, it is quite common to switch to traditional management before payout and you have to start living off the money, as everything is managed by someone else,” says Mattias Munter. The basis of the planning should be a lifelong perspective. But then there is a much more complicated puzzle to solve. “How to withdraw your capital is super important. It’s hard to change your mind once you start collecting the occupational pension,” says Mattias Munter. His advice is to make a plan for 5 years at a time. “Calculate how much money you need to do what you want, at the same time that there should be enough money left to live on for the rest of their lives.”One mistake that many people make is to take out an occupational pension in a short time, only to end up with a pension that is too low 10 years later.Taking out a big one share for a short time can also have negative tax effects for those who end up over the limit for state tax. By withdrawing the money more evenly over a longer period of time, the tax can be lower. The public pension is always lifelong, and can be paused if you start working again. This is not how it looks with the occupational pension. There, you have to make an active decision about the payment period in order to have maximum flexibility and so that the money is paid out optimally for the rest of your life. It is common to have several pension pockets, from different employments. Rather than taking a little out of all the bags at the same time, you can graze them one by one, which can create more flexibility. “The idea is to get as much flexibility as possible, but don’t forget that the money should be enough for many years,” says Matthias Munter.For those who have about 5 years left until retirement, there is more time to pick up the stock market again before it is time to start planning the withdrawals. It is also an excellent opportunity to review your investments and make any changes to your portfolio.”It is easy to forget to think about retirement. An event like this, a stock market crash, is a good reminder to review your portfolio, so that you have the distribution you want.” A benchmark when it comes to risk can be the government alternative in the premium pension, SP7 Såfa, which starts reduction of the share portion after the age of 56, by a few percentage points each year. It is also with a few years left until retirement that it becomes more relevant to make a forecast with My pension, to get an idea of how much money you have to play with . “Ask yourself the question: Do I feel comfortable with this? Maybe you want to increase private savings in the last few years,” says Mattias Munter. “By saving, you give yourself the freedom to continue working because you want to and can, not because you have to.” Savings of SEK 3,000 a month in 5 years, with a 5 percent return annually, gives a capital of approximately SEK 200,000. It is also time to ask yourself how long you want to work. Another year on the labor market increases the pension by 6-7 percentDo you have 10 years or more until retirement, there is no reason to reduce the risk in the pension portfolio due to the stock market crash. Mattias Munter also strongly advises against trying to be tactical and go in and out of the market.”It is notoriously difficult to succeed and not something I recommend for pension money and long-term savings.”What you can think about is the exposure to different markets. The more personal choices you have made, the more often you have to review the portfolio.”If you have chosen a percentage distribution between Sweden, globally and some industries, it will change over time, regardless of whether the stock market goes up or down. Then you need to rebalance so that you have the distribution you want.”He sees it as pointless to make a pension forecast on Min pension when you have a long time left in your working life. It’s impossible to know how one’s career and salary development will look like.”But what you can get a picture of is which parts you can influence yourself. The younger you are, the more responsibility and opportunity to influence you have, because the collective agreements have switched to a defined contribution occupational pension instead of a defined benefit one,” says Mattias Munter.If you have several with decades to go until retirement, there is also no reason to feel worried about how it will be that day.”If you are young, you should primarily focus on building up a buffer, perhaps saving for the next home. Only when you have established yourself on the labor market can you begin earmarking part of the private savings for retirement.”
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