From now on, it is difficult for young people to think about retirement. But time passes quite quickly, and already after 35 years you start to wonder how you will live then, whether there will be enough money, what you will do with your time. Some of us will try to work all our lives because we want to be useful to society, but at the same time have a standard of living similar to what we have now.

We have a new pension law that equalizes the retirement age for women and men: 65 years. If in 10-20 years this law will change and increase, we cannot yet predict this.

Given a life expectancy of 65 years:

Men need €180,000 in accounts for €1,000 a month pension

For the same pension of 1,000 euros per month, women will need 228,000 euros in accounts

This is because life expectancy at age 65 is 4 years higher for women.

The sums are big, so if you’re thinking about retirement, just saving month after month “on a mattress” (ie checking accounts or cash) won’t do the trick. The economy will not work in your favor, especially since we are also talking about inflation.

So, you need different tools for saving and investing.

HotNews.ro recently wrote an article about long-term investments, so we will not go into the details of the instrument mix.

At €105/month, if a man who is 35 today uses tools that earn him at least 9% annually, he will have just over €187,000 at age 65.

A woman, on the other hand, will have to save 130 euros, taking into account the long life expectancy, and will reach 231,000 euros at the age of 65.

*I used a compound interest calculator for the above calculations

Let’s not forget that in addition to this amount, he will also receive a pension from the state. Perhaps people who are 30-35 years old today will have a minimum pension and it will no longer matter much how much they contributed, given the aging population. Therefore, the amount will not be very large. This is just a theory. No one knows what will happen until then.

100 euros is quite a large amount for many Romanians. However, it is good to save, to have an amount for unexpected expenses. So even 50 lei saved every month can help you at some point.