The Announcement from BBVA and Banco Sabadell You Shouldn't Ignore: You'll Be Grateful in the Future

Retirement is a moment we all look forward to, but it's also a time for which we must be financially prepared. Recently, both BBVA and Banco Sabadell have issued warnings to their clients about the importance of saving before retirement. If we don't take the appropriate measures, we could face a decrease in purchasing power when the time comes to retire from work.

It is essential to plan ahead and understand how to prepare for the economic future. According to a report by Trade Republic, backed by economist Javier Díaz-Giménez from IESE Business School, attention must be paid to what is coming. The annual costs of the pension system will double in the next 20 years.

This projection casts doubt on the public system's ability to guarantee sufficient pensions for everyone. This highlights the need to take action before it's too late.

This scenario leads us to an important conclusion. To supplement the public pension and maintain the same standard of living after retirement, it will be necessary to save a considerable amount. In his analysis, he calculates that if you want to obtain an additional 1,000 euros per month for 10 years after your retirement, you should have 120,000 euros saved.

At first glance, it may seem like a large amount, but it is not impossible if planned in advance.

How to Achieve the 120,000 Euros Needed for Retirement?

The good news is that reaching that amount is not as difficult as it seems. According to the report, if you save consistently, you could achieve it without having to give up a comfortable life in the present. The trick is to start investing in a disciplined manner early on.

Díaz-Giménez suggests that if you save 50 euros per month for 40 years in an investment plan with an expected real annual return of 7%, you will achieve it. By the end of your working life, you would have accumulated approximately 128,166 euros. This figure is more than enough to supplement your public pension and maintain your purchasing power upon retirement.

The Importance of Reviewing Your Pension Plan with Banco Sabadell or BBVA

This is where the relevance of reviewing and adjusting your pension plan with entities like Banco Sabadell or BBVA comes into play. Both banks have specific solutions to help you save effectively with a view to retirement.

BBVA, for example, offers pension plans that allow you to invest in a variety of products according to your risk profile. Banco Sabadell is not far behind with flexible options tailored to your financial needs.

Reviewing your pension plan with these banks is a key step to ensure you will be prepared when retirement comes. If you take it seriously now, you can enjoy a more peaceful and less worrisome retirement without having to rely entirely on public pensions.