Why save for retirement is so hard

You work hard to put money aside for your old days ? It is a human. Tips to make it better...

Adopted by the Parliament, the law Covenant (action plan for growth and business transformation) must make pension savings more attractive. But how to act on the behavior of future pensioners ?

The future retiree, a stranger

"Save for retirement, there is nothing natural, notes the economist Mickaël Mangot. This imposes sacrifices immediate : limiting consumption, but also take the time to study the investment solutions, actions that go against our innate preference for the present." These sacrifices are all the less acceptable that "I" present is little connected to our future self, we feel for him less empathy for a friend", details there. If the future retiree within us is a stranger to our eyes, which is difficult to forego for him... And yet, "when we show someone what it would look old, the intentions of retirement savings climb," adds the economist. The other niggle is the optimism bias. We often think that in the end all will be well, that it was time to find a solution for his retirement."

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And there are more complex still than save for their retirement : well-save for his retirement. "The amount of investment available is perplexing, and encourages us to procrastinate," noted the specialist. The context does not help. With the erosion of the yields of the funds of life insurance in euros, the low rate of the booklet A and the volatility of the markets, the non-choice is gaining ground : two times more money than ten years ago is based on the current accounts.

Our biases psychological, we cannot also be rational. "With a long-term perspective, the stock Exchange releases in general better returns than investments in risky, which are struggling to protect against inflation, says Mickaël Mangot. Only here, our aversion to loss makes us reluctant to investing in the stock market. It comes in part from a lack of knowledge of the evolution of markets : we see their short-term risks, as if they auguraient of the danger to our savings over tens of years."

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"Automate the process"

The solution ? "II is necessary to automate the process", claims to Mickaël Mangot. The monthly payments are programmed on the life insurance thus allow to circumvent the preference for the present. It is possible to stop at any time, but many will not, because this requires a process.

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studies have in addition shown that committing to save in the near future is simple to get. So don't hesitate to use the option transfer delayed of your banking application, or the scheduled payments of life insurance : you agree today, but the operations will not begin in a few weeks or months, on the date chosen.

be aware of the power of the time on returns is also crucial in order to be convinced of the interest to start early. Each year, the interest yield interest - exponential process complex to grasp for the brain, but powerful. Has annual yield equal to 4.5 %, up to € 30 000 placed ten years will generate 16 500 € of interest, compared to 82 500 € over thirty years. Five more times. Numbers to remember before to postpone his investment.

however, one should not conclude that the French are not saving for their old days. "Certainly, when we ask them what they do for their pension, only the rich say that they have qualified products for retirement, but others explain in number they will refund the credit of the house, have a life insurance or an apartment lease," says Philippe Crevel, director of Circle of savings. A fraction of their gross income on hand in addition in pension contributions, on the basis of which their pensions will be calculated.

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"The concern is that they are saving way to property. Once retired, they draw, paradoxically, not in what capital they have established precisely for their retirement ! They prefer to keep it 'in case'. But then again, at the time of duty, for example, fund a long-term care facilities, they would prefer not to have to touch this heritage to be able to transmit it. There is in the minds a sharp distinction between the income (pension) and the accumulated heritage, perceived as an inalienable asset, including by those who do not have children."