It seems pensions are never out of the news in the Netherlands at the moment and many expats and internationals must be wondering if they have made proper provision for their retirement.

But while Dutch pension funds are being forced to cut premiums and pay-outs and the pension age is to be increased, proper private provision can ensure you have the pension you expect and need when you decide to stop work.
It takes a slew of bad newspaper headlines to get people to actually stop and think whether they are on target to retire when they want to and at the level of income that they will need.
Under-investment
Many are coming in to retirement only to discover that they are woefully under invested and thus not able to retire on anywhere near the income that they would like to retire on.
But with pensions making headline news, more and more people have come to realise that they must examine their plan for retirement very closely to ensure they are able to retire at a time, and income level, that is in keeping with their objectives. Gone are the days where your employer, or the state, would look after you in your ‘golden’ years.
For expats and internationals the situation is further complicated by the fact that they tend to travel about and end up with bits and pieces all over the place. With the lack of tax harmonisation between different EU member states, the situation is further complicated by not being able to transfer retirement funds from one EU country to another.
Country hopper
The reality is that if you want to retire at an income level that you want, you need to be putting some money aside in your own personal retirement planning scheme. Also, if you are likely to sustain a transient nature to your career (aka country hopper) you need to consider making use a of retirement plan that is portable and can follow you as you move to different areas of the world.
At AES International they treat individuals as just that, individuals. They start off by analysing exactly what it is that you will need to live on, when you come to retire, and then work out how much you will need to save in order to reach your goal.
As with any important financial plan, you need to decide with your financial adviser how much it is that you need to save each month in order to reach your target retirement fund. How much you will need to save is dependent upon the level of income that you will require in the future.
Inflation
An important factor to always consider is the effect of inflation on future spending power. If you wish to retire on an equivalent income of €30,000 in 30 years time, you will actually need to be generating an income of around €60,000 to be able to maintain the same lifestyle.
The important point is getting a plan in place and making a start. You can always increase what you pay in each month, when your salary goes up in the future. Making a start is the golden key to retirement planning.
For a fee-free, no obligation meeting to discuss your personal pension situation, contact AES today. As winners ,and nominees, for awards from the Financial Times, Money Marketing and the Sunday Times, AES operate across the world – acting global but very much working at a local level.