You should estimate your expected retirement expenses: housing, health care, travel or hobbies. Determine the amount you would like to receive monthly and calculate how much capital is needed to generate it, taking into account the return on your investment portfolio.
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A common mistake is to rely only on the state pension. It often does not cover all needs, and payments can change due to economic conditions. Private savings plans, stocks with dividends or bonds can help close the financial gap.
Starting to plan in advance will insure yourself against unexpected expenses and will allow you to maintain your usual standard of living. Review the strategy every few years, adjusting the amount of contributions depending on your income and investment results.
