3 pension strategies that provide a comfortable retirement income

mohamed shalaby - | Business

The General Pension and Social Security Authority has confirmed that saving is a process that has practical foundations and rules that the insured should be aware of if he wants to plan for the post-retirement phase in a successful manner. The authority also noted that planning the annual personal budget for the family is the most important basis on which saving depends. If the insured wants to successfully plan for the post-retirement phase, he should know these foundations and rules.

The organization emphasized the significance of budget planning, explaining that doing so assists in establishing the order of priority for monthly expenditures and calculates the potential surplus that can be put away based on an understanding of the total amount of anticipated financial outlays throughout the course of the year.

retirement income
comfortable retirement income

It is also mentioned that the budget is developed on the basis of assessing the projected income through knowledge of the personal assets owned by the insured. This includes the value of the current pay within the next year, savings, investments, and the emergency amount if there is a cause to shift it.

The organization stated that "after determining the expected annual income, the next step is to determine the annual obligations." Annual obligations include things like loans (long-term obligations), monthly obligations like car installments, water and electricity bills, living expenses like food and drink, and fees like education fees, insurance fees, energy fees, communications fees, and other fees.

Also add the following details: "After determining the value of the expected annual income and determining the value of the annual obligations, it is necessary to think about how to manage the spending and savings process in order to achieve a balanced lifestyle to support the financial stability of the insured and his family during the course of the year, while achieving a financial surplus that can be saved."

She pointed out that the first steps in this regard begin with defining spending priorities, balancing income with obligations, developing a savings plan, and determining the percentage that the insured wishes to save, for example, in the first year of the plan. She then emphasized that the second step is balancing, studying, and controlling expenses, and that the insured should pay attention to these areas. She emphasized that the insured should pay attention to these areas because it is their responsibility to do so. The insured should, when determining the priorities of disbursement and the type of expenses and liabilities, avoid, as much as possible, adding any new element to this budget. This is especially important if the new element is not one of the basics, as adding it would mean an increase in the disbursement rate and a decrease in the desired savings rate. When determining the priorities of disbursement and the type of expenses and liabilities, the insured should avoid, as much as possible, adding any new element to this budget.

And explained that the third step revolves around saving the surplus amount of personal income and investing in it whenever possible, because the growth of savings is one of the goals of the savings process, and investment is a different concept from saving, while saving means storing an amount of money in a secure treasury to be used after a few years have passed. Investing involves taking advantage of these funds and developing them over the course of a longer period of time.

The organization said "it is important while setting the personal budget to keep an emergency amount in all circumstances to avoid future borrowing, and preparing the emergency fund is one of the main steps necessary for the success of the budget plan, as it serves as a financial support to maintain the progress of saving plans and budget even in the worst cases, as it is," and "it is important while setting the personal budget to keep an emergency amount in all circumstances to avoid future borrowing." It is possible that the insured is exposed to some financial developments that may force him to pay commitments that were not included in the expense plan. This is because the plan did not account for the possibility of such developments.

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mohamed shalaby
mohamed shalaby
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More than 14 years of experience in the field of websites - PHP programmer - server management

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