1) Isn’t it too early for me to worry about retirement?
No, legislation have come through many changes in recent years and you should know that these changes have an important influence on your future. First of all, your saving for retirement now is far different from the way your parents or grandparents were used to save. Another reason why you should start to be worried about retirement is the fact that postponement of saving each year lowers individual capital of 3%.
2) What are the most important things I need to know about retirement?
Since January 2005 our retirement system is based on three pillars. First pillar is obligatory for each economically active individual who pays 14% (18% if the saver doesn’t have a second pillar) from his gross wage to Social Insurance Agency which redistribute these funds among present pensioners. Entering second pillar is not obligatory since 1.9.2012. It represents retirement pension saving. Each saver contributes monthly with a sum of 4% from his gross wage on his personal retirement account which is managed by a chosen pension fund management company. Since 1.9.2012 the savers can voluntary contribute with a sum higher than 4%, however, only 2% from their assessment base could be tax-deductible. Third pillar is voluntary supplementary pension saving and the contributions from savers are sent to their supplementary pension fund management company.
3) How can this web page help me?
It will raise your awareness in the area of investment, saving and finances. It will help you to better decide about your savings for retirement, it explains you how different pension fund management companies work, so you’ll be able to make your own choice on the way where and how you would like to save. This webpage operates on the base of interactive education, and one of its objectives is to increase you investment literacy and to understand the retirement system of Slovakia.
4) What is the optimal amount of money that I should save every month?
This depends on the final sum of savings that you would like to have, as well as on the amount of your monthly rent that you want to pay on retirement.
5) Can I save money for my retirement even if I am still a student?
It is good to start saving even if you are still a student. At the beginning, the sum that you are saving each month is not that important. What is important is to learn how the system works, and to understand that money can actually work for you. They bring you interest, income or just a good feeling of certainty that you have created yourself some financial reserves. As for entering the second pillar, you can enter only in case that you already dispose of contract from dependant activity. Apart from saving in the second pillar, nowadays there are different products offering saving that you might find interesting.