Let time work for you
Copy IRENE SCHOEMAKERS Photography SHELL | 4 minutes
Thinking about your pension can vary greatly from person to person and can occur at any age, whether you are 20 or 60. However, one thing is clear: the earlier you start considering your pension, the easier it will be to make the necessary arrangements.
In your twenties: pension is a faraway land
For many people in their twenties saving for a pension is often not a top priority. Instead, the main focus is often on studying, starting a career, paying off student loans or simply enjoying life. But at this stage of your life, as you are just beginning your career, you usually have lower expenses and more flexibility in your spending. Which is a great opportunity to develop the habit of saving money for the future. By doing so, you can ensure that you have enough savings later on to maintain a comfortable lifestyle.
The benefit of starting early offers a significant advantage: time. The more time you have, the longer your money can grow. By saving early, you can contribute smaller amounts each month, making it easier to manage your budget. And an early start allows you to take some investment risks, which may result in better returns in the future. But one of the biggest benefits is the effect of compound interest. Over time, the interest you earn on your savings can also generate additional interest, which can lead to substantial growth. Even if you contribute just a little bit regularly, it can accumulate significantly over the years.
Want to know more about investing? Read Janneke Willemse's story.
In your thirties: reality is creeping up on you
In your thirties, the importance of pension planning often becomes more apparent. During this phase of life, many individuals are likely to buy a house, have children or advance in their careers. With all these new financial responsibilities, it’s not just about looking after your own finances anymore; you also want to make sure that, if you have kids, that they have a solid financial future. Financial planning is becoming increasingly important, and pensions are a part of that.
In your forties: retirement becomes a key priority
As you near your forties, planning for your pension becomes important. Many people realize they need to take (some extra) steps to ensure a comfortable retirement. This need often comes from rising costs, such as paying for college for children or caring for family members. As a result, you may start saving more for your pension or look into investment options such as real estate.
Do you have a clear picture of your future income?
Your pension with Shell plays a significant role in your financial future, but it's not the only component. Whether you're currently working, approaching retirement or already retired, it's important to understand what has been arranged for you and what actions you can take to secure your financial future. Explore these topics in the e-learning course How financially fit are you?
In your fifties: things are getting very real
As you approach the age of 50, planning for your pension often becomes a top priority. People begin to evaluate how much money they will need to live comfortable later. This can also lead to the realization that there may be gaps in your pension plan that need to be addressed. The good news is that it’s never too late to act.
Would you like some assistance in reviewing your pension and options? And are you a participant in one of the Shell Pension schemes? If so, you can sign up for a conversation with Prikkl, where they can provide valuable information about your current pension situation and discuss the options available to you. Along with their implications. If you are thinking about retiring soon, Prikkl can help. Click here for more information. https://prikkl.nl/care-shell-pensioen-en/
Use the Pension Checker to check how much pension you have accrued
In your sixties: countdown and fine-tuning
For people in their sixties, retirement is often no longer far on the horizon, but a fast-approaching reality. The focus is now on optimising finances. This may entail scheduling pension benefits, liquidating savings or moving into a house that better suits this new stage of life.
Are you thinking about retiring around 2026/2027?
We understand you might have questions. Retirement is a significant decision, and we understand you may have questions, especially with the upcoming changes to your pension scheme. Understanding your pension options is necessary for deciding whether to retire now or wait for the new scheme. And what options do you have—retiring early, working longer or taking partial retirement? Shell Pension works with Prikkl to offer you a personal consultation with an advisor. This gives you insight into your options and helps you decide what suits you best. This service is provided by Shell Pension to help you make informed choices for your future.
Sooner rather than later
Deciding when to start thinking about your pension is a personal choice and depends on your financial situation. However, it is beneficial for everyone to start early. Even small amounts saved over time can grow into a substantial pension over time. Allow time to work in your favor. As a well-known Chinese saying goes, "The best time to plant a tree was 20 years ago. The second best time is now."
