Retirement in your own home

It's never too early to start thinking about provisions for your senior years. Those who approach their residential property and finances systematically can feel more relaxed when looking ahead to retirement.

Jürg Zulliger

It has become much more difficult to make predictions about foreign exchange trends, interest rates and our future retirement benefits. Here interest rates play a major role in determining the amount of our pensions. While rates for federal bonds were still at 4 per cent when the current pension system was introduced in 1985, today we are dealing with interest rates between zero and 1 per cent. Such low returns reduce the assets in pension funds.

Retirement benefits under pressure

Martin Janssen, Professor of financial market economics at the University of Zurich, adds that, «I assume that many pension funds will have to revert to restructuring measures and that individual pension benefits in future will drop.»

Even if today we are increasingly faced with uncertain predictions, we can still take charge of our dreams for how we wish to live, of our personal needs and future plans and hobbies, all of which will play a large role in retirement. Those who in their senior years want to enjoy all the benefits of their own home, whether a condominium or a single-family house, should start early with financial planning.