More than 80 percent of retirees cannot pay for a stay in a residential care center with their state pension. This is shown in the book ‘Investing in the third half of your life’ by VRT journalist Michaël Van Droogenbroeck and Knack editor Ewald Pironet. In their book, out today, the authors examine various post-retirement money matters.
In our country, the statutory pension corresponds to 46% of the last earned salary, according to research by Eurostat, the statistical office of the European Union. In 16 countries of the EU the statutory pension is higher than in the Netherlands, in 10 countries it is lower. “There are big differences between the statutory pensions of civil servants, employees and the self-employed,” say the authors. “The book states how many people in each system receive which monthly amount as pension.”
In the book, the figures about how many people receive which monthly pension amount are linked to the cost of a residential care center. The conclusion is striking: 80 to 85 percent of retirees receive a statutory pension that is too low to pay for the cost of a retirement home. This number is highest among retired employees and the self-employed. The situation is even more dire for women than for men, and almost three quarters of the residents of a residential care center are women.
“These figures show the great importance of being sensible with money matters during an active life and building up a financial buffer to absorb the fall in income after retirement”, Van Droogenbroeck and Pironet said. In their book, the authors give tips on how people can try to absorb this income trap.
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