What if pension savings were like a dating app?

Swipe left, swipe right. What if pension savings were as easy and fun to use as a dating app? Let’s consider your pension savings as the digital start of a love story.

Step 1: what will your dating profile be?

No one knows you better than you do. Start by creating your personal pension savings profile. Identify a number of crucial aspects to find a pension savings plan that suits you: • Your current financial status • Your financial goals for the future • Your (investment) risk appetite • The time remaining until your retirement (the planned savings period) The more accurately you enter your “interests”, the more likely you are to find a match that will change your life in a positive way. You don't have to worry about a profile photo, either. When it comes to pension savings, brains are far more important than looks.

Step 2: explore the dating pool of pension plans

Like in a dating app, there are many potential matches out there. What is your perfect match in the world of pension savings? It is up to you to consider the deciding factors for your healthy and natural financial relationship. Look beyond appearances: • How much can you save for your pension every month and still live comfortably? • Will you receive an interesting return? • Will you save up to 1,020 or 1,310 euros per month for some interesting tax relief ? • Will you opt for the security of pension savings insurance or for a somewhat more adventurous pension savings fund ?

As with real relationships, pension savings are a long-term commitment that will only improve if you consistently invest in it with loyalty.

Step 3: swipe & date

Once you have made a detailed comparison of the different candidates, the next step is to make the right choice. What is the net return on your savings at the end of the line, taking into account the term, tax relief, final tax on your 60th birthday and so on? Which way will you swipe next? Once you have made your choice, you will go on your first “date” with your pension plan. At first, you will naturally have to get to know each other. For example, can you set aside a monthly figure each month in a way that is financially comfortable? Once you are on your way – and providing you keep believing in your goals – you will soon see the many benefits of your pension savings. And if things don't feel exactly the way they should? Pension savings are very flexible, both in terms of the amounts you save and the risks you want to take with your plan. Look at the lessons learned and reach for success in a different way.

Step 4: invest in a long-term relationship

As with real relationships, pension savings are a long-term commitment that will only improve if you consistently invest in it with loyalty. Thanks to the principle of compound interest, you can make your pension pot increase exponentially year after year. This means you earn interest on top of your previous interest amount(s). The result is that the longer you put money into your pension savings, the more you will have at the start of your retirement. In other words, remaining loyal to your pension savings plan comes with extra rewards. If you want to get even more out of your pension savings plan, you can reinvest some or all of your tax relief, for example in securities. This allows you to demonstrate even more commitment towards your pension savings plan in order to achieve an even higher return.

Step 5: avoid ghosting

A final top tip: always have a hand in your pension savings plan. The more you ghost or ignore your plans, the less aware you will be of the potential improvements you can make. This could jeopardise your initial financial goals. Like in any good relationship, you need to keep your finger on the pulse and keep communicating.

Choose a loyal pension partner to have at your side

At Keytrade Bank, we are devoted to helping you make your financial future plans come true. Discover more interesting information about pension savings on our website.

Dive into our pension savings information pack