What would the retired version of you say to yourself?

Let's step into a parallel universe where you run into your older self. They have had a long, successful career. What would this person – who resembles you in so many ways – say about the financial choices you are making today? Will your future self thank you for the carefree enjoyment of their golden years or will they point out the missed opportunities that were available to you? We have explored 5 possible scenarios for you.

The early bird gets more than the worm

It is a simple truth: the earlier you start your pension savings, the better. Building your pension savings carefully and consistently has two major financial advantages: your return increases with every new deposit thanks to the principle of compound interest and you will get a lot of money back each year through your personal income taxes.

5 encounters with your future self

By the way: pension savings are not just about building a lump sum and returns. They are also about getting into the habit of thinking about your financial outlook. The impact on your future financial situation cannot be overestimated. So, how would your older, retired self react if they were to run into your current self? We see 5 potential types of meeting.

Scenario 1: The Flexible Saver

You start your pension savings with the idea that you are only saving for yourself, but life changes. A partner, children and maybe even grandchildren arrive. Throughout your life, your pension savings plans take a back seat at times. When times become more challenging financially, you ease up a little, but you build up steam again as your bank account allows. The result is that your future self introduces you to their family, who are proud of the financial security you helped to build. By closely monitoring your pension savings, you made a good financial contribution to the future. You understood the message that money has to be handled wisely and flexibly.

Scenario 2: The Denier

Pension savings will never really be your thing. Your statutory pension and supplementary pension will have to do. Living in the here and now is a great way to live life, although your future self may need to have a word with you on that. By not paying attention to pension savings, you missed out on a number of financially interesting benefits, such as the annual tax relief, the ever-growing return and therefore also the resulting final yield. Over a period of 40 years, you can easily collect more than 100,000 euros thanks to your pension savings. A welcome extra security blanket for the minimum monthly effort.

Scenario 3: The Slow Starter

In another scenario, you will only start saving for your pension at the age of 40 or 50. Your future self is grateful for every effort you made, but there is still this unmistakable feeling of “what if”. Your older self will not need for anything, even though your life style may be a little more modest and reasonable here and there than it could have been. By starting your pension savings earlier and making full use of the power of compound interest you won't need to think twice about enjoying the finer things later on in life.

There is a chance you will see your future self living a life full of passion. What choices does your younger self have to make this happen?

Scenario 4: The Brave

You intend to make maximum use of your pension savings tax relief, whether you start your pension savings at 20 or 40. This means you immediately reinvest any personal income tax refund amount in order to achieve the highest possible return. There is a chance you will see your future self living a life full of passion, with plenty of time and more than enough resources to learn new things and discover the most beautiful places. What’s more, your future self is investing in several new great loves with just as much passion. Fortune favours the brave... isn't that how the saying goes? And what about killing two birds with one stone?

Scenario 5: The Wise Saver

Imagine that you diligently reinvest your tax relief each year in a well-considered pension savings plan, in which you mix healthy risks with a good dose of long-term thinking. You start your pension savings plan at the earliest possible age, you invest as much as you can afford, and you make the most of the advice you can get from your financial wingman along the way. We are pretty sure your future self would come up to you with a big smile on their face and give you a heartfelt hug. A mortgage that was paid off more quickly, a pension with all the bells and whistles, hardly any financial headaches... Slow and steady wins the race. There is every chance your future self and the generation after you will thank you.

So... who will you be (in the future)?

Meeting your future self doesn't have to be an uncomfortable confrontation. On the contrary, it can affirm the wise decisions you make today. Start saving for your pension today and make your future self your biggest fan. Find out more about our range of pension savings on our website.

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