Investment

Is "20 million yen" necessary before retirement? Five measures you can take now

Last year, a report by the Financial Services Agency council shook all over Japan, estimating that 20 million yen was required for retirement in addition to public pensions.

Some experts have pointed out that the administration may be so worried that it wants to delay the age at which pensions will begin to be paid from the current age of 65 to 68, 70, and eventually 75.

In any case, the pension system reform has failed, and the pension alone has made it difficult to live in old age.

So what do we do? I thought about what to do now to help alleviate the anxiety of old age.

◆ 1. Don't expect too much from pensions
It's easy to argue against this and denounce the government's response, but it's nothing to say.

In that case, it is more productive to make it easy to say, "I will deal with my own retirement at my own risk."

First of all, rather than relying heavily on pensions, build a living infrastructure that allows you to be lucky if you can and without a pension. Because the more you depend on your pension, the less you can help when you can no longer rely on it.

Conversely, if you don't expect a pension, a pension is like a positive pocket money and you will have a much older retirement age than you think.

◆ 2. Acquire asset management ability
Second, instead of living while losing your savings, you need to earn a “periodically stable income source” such as interest, dividends, and rent income.

By the way, according to the above-mentioned report, it is necessary to extend the "life of assets [the period until the assets that have been formed up to running out of life in retirement are exhausted]".

If this is exhausted, there is no longer a chance to live on pensions alone, but there is concern that living standards will be lower than welfare. Therefore, it is not possible to live long with savings alone.

Of course, in order to be employed somewhere after retirement, it is also important to improve employability and to establish a state of independence by starting a side job.

However, if you anticipate the days when you will not be able to work or the days when you will not want to work, securing a source of income other than employment or entrepreneurship will lead to a sense of security.

Therefore, from the active era, continuous and stable income such as "investment in stocks with high payout ratio", "investment in bonds with high ratings and high interest rates", "investment in rental real estate and solar power sales business" Is to promote investment in financial products and real assets that generate

◆ 3. Increasing savings while saving tax
Thirdly, it is necessary to purchase insurance that can balance tax saving and investment. If you subscribe to iDeCo [personal defined contribution pension] or a self-employed person, such as the National Pension Fund or Small Business Mutual Aid, you will be able to save while reducing tax expenditures because all contributions are eligible for income deduction. I can do it.

Alternatively, there is an upper limit on income deductions, but only the minimum amount that can receive the maximum premium deduction enrolls in savings type life insurance, medical insurance, and individual annuity. And the timing of the return of maturity is scattered, for example, 65 years old, 70 years old, 75 years old, etc.

◆ 4. Consider health from active era
And it is said that half of the Japanese medical expenses will be spent after the age of 70, so it is important to keep an eye on health from the active era. Many people focus on improving their eating habits when talking about "health," but stress and sleep are the biggest factors that impair health.

Stress weakens immunity and increases the risk of illness. If you don't get enough and good sleep, your hormonal balance is disrupted, metabolism and cell repair are delayed, and you are more susceptible to brain and heart disease. Managing stress and rest is the first step to health.

When it comes to eating, it's not about adding "good to eat this" or "good to eat this" as a plus. Most lifestyle-related diseases are caused by overeating and overnutrition.

◆ 5. Review the cost of living
Finally, reduce living costs. In particular, reduce fixed costs, regardless of your income.

For example, smartphones are cheap SIM providers and landline phones are no longer needed. In the heyday of 5G communications, which will soon begin, smartphones and dithering alone will suffice, eliminating the need for an optical line at home.

In addition, if you do not need newspapers or television, cancel. This alone should greatly reduce the lifetime cost. In addition, if you keep your house and pay it off when you retire, you can significantly reduce the cost of living in retirement.

◆ The retirement age is determined by what you do now!
I've introduced what I can do now for my retirement, but I think most people have the impressions of "huh-um", "that's impossible", "I know but it's quite …".

So many people say, "It's awkward to think" and "It's even more troublesome to act", abandoning their thoughts and actions and rushing into retirement without care.

My expectation is that only those who have thought and acted strategically will laugh after retirement. And which side do you want to stand in the future?

Text = Tokio Kodo [money guide]
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