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How to best manage your money in old age

Geld in old age can be a blessing. However, it is often a burden, especially when there are high balances on the accounts that have to be used to finance retirement. The problems start with the pressure to invest the money profitably, and the difficulties end with the question of which products the capital should be invested in. Women and men face similar problems here, but their behavior is different. Men spend little time investing and are prone to risky investments. Women take a long time to make up their minds, but their investments are usually safer, as the following example shows.

A single investor, 66 years old, has 950,000 euros in her account and no pension in her pocket because she never paid into a pension fund. That doesn’t seem to be a problem with this wealth, but on closer inspection it turns out that a million isn’t a lot of money when people are healthy. The investor expects to be at least 90 years old. She is concerned about safety and does not want to risk her money. She also expects inflation of 1 to 2 percent per year. These are “unpleasant” framework conditions because there is no longer any money to be made with secure investments. As a result, the 950,000 euros only need to be divided by the remaining term of the investor to estimate the amount of the pension. If you are 24 years old, you get 3299 euros per month, and this amount does not make the lady happy.

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