Real Estate Investment blog

How can you secure your retirement by investing in real estate

Invest in real estate to secure your retirement
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It’s never too late or too early to start planning your retirement. Even if you have a decent job right now with a satisfactory salary, your pension won’t quite be the same. The fact that retirees are living longer and many countries are experiencing lower birth rates is causing a pensions crisis. There’s a growing demographic above 65 with increasing life expectancy due to improved quality of life, access to health care, clean water and nutrition. And whereas this is a positive thing for people wishing to live longer, it’s also an economic burden which is problematic for future pensioners.

People are living longer than expected

oval white medication pill

Retirees are currently receiving state pensions for much longer than originally expected. This is crippling state budgets and causing governments to reconsider future pensions. Pensioners in countries such as the Netherlands, Turkey and Croatia are receiving more than 100% of their average working wage when they retire. Furthermore, the global population over 65 has been increasing steadily since WWII, with countries like Estonia and Denmark counting the elderly as over 19% of their total population.

It’s a global time bomb and governments can’t afford it

two men playing chess

Pension systems were originally designed to rely on the majority of the population working and paying taxes to support the elderly part of society. However, with an increasing generation gap and Europe’s declining birth rates this model becomes inefficient. Hence, most states have switched to personal saving pension plans in order to transfer the load from the state’s shoulders to every retiree’s own, making pensioners responsible for their own personal financial wellbeing.

Today’s youth isn’t relying on state support

sittin people beside table inside room

A lot of surveys among millennials prove that though they might not fully understand the size of this problem, they don’t believe in the system and therefore don’t plan to rely on state support when they retire. However, since people globally don’t understand investment, it’s worrying to think about what will become of future retirees who aren’t planning ahead. The main options to build yourself a decent safety net include investing in assets or opening an interest collecting savings account at the bank, but with the latter, inflation will quickly become your main problem. You have to be a true believer in the banking system to confidently depend on their pension funds for your survival.

For many people, retirement becomes a period of financial stress

person sitting on beige street bench near trees

The truth is, many people don’t even get to work up to the age of 65. Eventually, either health issues or unemployment will start to interfere with you receiving a monthly salary once you reach a certain age. And although your retirement should be the time to enjoy your life’s work and do all the things you’ve always dreamed of doing, instead, it becomes a period of depression, lack of money, declining health and missed opportunities.

Your bank’s pension fund won’t save you

person holding pens and papers

Banks always have their management fees when it comes to pension funds. Even if banks like SEB decrease their management fees from 0.95% to 0.49%, you’re still not gaining as much as you could if you would invest in long-term assets. Banks charge their management fees annually regardless of the fund’s positive or negative growth. Also, the management fee is taken from the fund’s total amount, and even then you still pay an additional fee when exiting the fund. Hence, you’re constantly losing a percentage of your retirement money, instead of gaining attractive returns from capital growth.

Investing in real estate with Reinvest24 can offer you peace of mind

woman peeping at window

Reinvest24 is a real estate investment platform that allows you to invest in profitable properties together with other investors. Our investment properties all have great potential and provide passive income from monthly rental yield as well as long-term capital growth. You can invest your hard earned money into real estate collectively with other likeminded people starting from 100 euros, providing a 14.6% total combined return per year. Discover the rewarding habits of financially fit people and start thinking about your future today.

    • Reinvest24 provides the best investment alternatives
    • You decide which property to invest in, how much and when
    • You can cash out and retrieve your money any time without fines or exit fees
    • If you build a big enough portfolio you can even eventually live off passive income
  • We earn commission only if you earn profit from your investment

Think of your pension as a bonus, not your livelihood

man embracing the woman on top of hill

Considering the average old-age pension in Estonia was 405.4 euros per month in 2017, there’s really not much to look forward to, especially considering the average rent of a 1-bedroom apartment in the city centre costs 451.96 euros. According to these figures, you won’t even be able to cover your rent, let alone food, utilities and medical expenses. Furthermore, you can completely forget about enjoying life, traveling or taking up a new hobby… you simply won’t be able to afford it. Hopefully these alarming facts will awaken your desire to invest and plan ahead, leaving your pension to simply serve as an additional source of passive income, rather than the only income.

Earn 1 million euros by the time you retire

smiling woman while holding hands during daytime

Investing in real estate is an excellent way to fight against inflation and ensure long-term wealth from capital growth and rental yield. You can read about our long-term investment projections in our post where does investing 100 euros per month get you? By investing 200€ every month regularly for 30 years (72K total investment) with a 14.6% total combined return per year, you will end up with a portfolio worth 1,206,882.53€ in just 30 years. With over a million at your disposal by the time you retire, you can do anything you want.

In conclusion, the majority of the world isn’t prepared for retirement and suffers from a lack of financial literacy. Furthermore, governments and banks are not capable to provide you with financial freedom and the retirement of your dreams. The only solution is to take matters into your own hands, research and invest in long-term portfolios with profitable returns. Start thinking about your future, discover our investment properties and become a real estate investor today to secure your retirement

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