Sounds like a strange statement, doesn't it? And in reality ...
The retirement you will experience in 40 years will probably look very different from that of your parents.
For a long time, the retirement system has relied primarily on a pay-as-you-go model, where working people fund retirees.
Tomorrow, that system will probably still exist, but it is likely to be less generous. That is why it is becoming essential to build a strong additional retirement fund through long-term savings and investment.
The earlier you start, the less you need to invest and more you can gain.
At Schneider Electric, there is a particularly attractive solution available: the PERECO.
Let’s take a very conservative example:
- Each year, you only need to contribute €1,310 to benefit from the maximum €800 employee matching. For example, through Payling you can spread this over 5 months with a monthly payroll deduction of €262.
- Then, assuming very modest investment returns averaging around 2.5% per year...
After a 43-year career, you could have built up a retirement fund of approximately €160,000.
Your total personal savings effort? Around €56,000.
The result?
More than €100,000 of additional value generated through the company contribution and compounded investment returns.
That is why retirement is a topic that concerns young people first and foremost.
The CFTC has developed a tool that allows you to run your own projections based on your personal situation and assumptions.
So don't hesitate to talk about it with your CFTC representative... perhaps over a coffee?