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Early retirement? Only with its own funds

Every year increasing numbers of citizens who took early retirement. Often, even involuntarily, because they can not find in a retirement job. Without their own savings and investment is life in retirement with only early retirement complex.

Compared to ordinary retirement pension early retirement is considerably lower due to cuts for precocity and having worked for years or less compared to citizens who work until regular retirement. Early retirement is yet lower still. In regular retirement remains unchanged. From a financial standpoint, the early retirement good choice.

The numbers speak for themselves

In 2013, paid the Czech Social Security Administration (CSSA) 543,000 early retirement, in 2014 the number of early retirements increased by an additional nearly 23 thousand. In the last two years, approximately one third of the leaves instead of ordinary income into early retirement. In 2006, the CSSA paid only 295,000 of early retirement. Number of early pensions paid from 2006 to the present has almost doubled.

Who enjoys early retirement?

In practice, there are two groups of early retirees. The first group of early retirees has a financial cushion and into retiring early to have finally time for hobbies and family and enjoy retirement. The second group consists of people who have little or no private savings and early retirement is a necessity because they can not find employment in the labor market "on responsible financial behavior during the productive age and sufficient own investments can be seen as an early retirement benefit, as previously retire. Without their own funds is a disadvantage early retirement, "says Emil Brooch, CEO FINFOCUS.

When can I retire early?

Retirement age varies according to the year of birth. In women, taking into account the number of children raised. The retirement age will gradually be extended. Into early retirement can retire earlier than three years before the regular retirement. Citizens having retirement age greater than 63 years can retire early at age 60. First will be possible in the future to take early retirement 5 years earlier, this option will have people having a retirement age of 65 years and more. But who does not have adequate financial resources, for it is not appropriate to early retire too early, standard of living by going into premature retirement noticeably decreased.

How much lower is early retirement?

The calculation of retirement is an individual matter and depends on throughout the insurance. The actual amount of the state pension is influenced by many factors. When calculating the early retirement is to be expected cuts for precocity. Curtailment is performed every 90 days premature. Therefore, the calculation of early retirement, the sooner you into early retirement goes, the lower the monthly state pension. "Citizens early retirement 3 years earlier, however, should result in a reduced state pension by about a quarter, which is already a big difference which should at least be compensated for by its own means, "says Emil Brooch.

Why will increase the number of applications for early retirement?

Due to continuous extension of the retirement age, young people should think about their own security in retirement as soon as possible. In future it will be able to work into regular retirement even fewer people than at present. Who will want to make the most of the autumn of life is early retirement, he will need to have sufficient own security at retirement. Investment or savings for retirement should have an important place in family financial planning already in their thirties. Long-term regular investing is a way to achieve attractive appreciation and even early retirement have sufficient funds for travel, culture and entertainment.

Source: tz

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