Many Paths Lead to Rome, Even in Pension Planning

Published on 2025-10-22

When I ask my clients what they wish for their third stage of life, it is always an exciting moment for me. Why? I quickly notice how well or poorly they are prepared for the topic. What questions they have already asked themselves and which ones they have not. One example: When it comes to retirement, many people feel: today working life, tomorrow retired life. But the reality is as diverse as the people themselves, and that is the exciting and varied aspect of my job as a pension planner. There are different ways to exit the professional life, and often a combination is possible. Here is a list of the most common ways:

Whatever the wish looks like, the task of the pension planner is to align the facts with the legal regulations (of the various areas) and the client's wishes and to extract the maximum value.

What exactly is looked at in pension planning?

The areas of focus are:

What added value does pension planning bring?

When one retires and receives capital, one is often as "rich" as never before in life. This also means that the responsibility for the individual increases. Psychology shows that many are overwhelmed by this. An extreme example is lottery millionaires who are bankrupt again after a certain time. The right approach starts with asking the right questions. My task as an independent pension planner is to find out what questions the client has not yet asked themselves.

For a professional, many things are logical and clear, but the client usually only retires once. Therefore, it is important to ask the right questions and have a qualified financial specialist on your side, like a football coach who is on the sidelines throughout the game. Because everything has its sunny and shady sides. The question is always, how much sunshine can and do I want to endure?

The more the pension planner knows about you, the better they can help you live the life you desire. Of course, financial benefits such as tax advantages, higher investment returns, etc., are included.

What is often underestimated or overestimated at retirement?

Health & Life Expectancy

Without health, everything is nothing. Like with finances, many talk about it but do little for it. Staying active daily, maintaining social contacts, eating healthily, and above all finding your Ikigai. Ikigai - what? Ikigai is a Japanese word that translates loosely to "that for which it is worth living."

Studies have shown that older people with a purpose take 50% fewer pills than the comparison group. This purpose can be as small as it may be, but it should be fulfilling for you. Whether it's taking care of the neighbor's children (e.g., once a week), the house cat, or tending to plants. This not only increases life expectancy but also quality of life. For this topic, I can recommend the Netflix documentary series "How to Live to 100?". Let me know what you liked most. I look forward to your insights.

Your own death

In 99% of cases, pension planning only considers fair weather scenarios. This means everyone stays healthy and ages. Very desirable, but very far from reality. One's own death is a taboo subject. Nevertheless, it is important to deal with one's own passing early on and to make appropriate arrangements to spare loved ones unnecessary stress.

No Plan B available

Many people do not have an alternative plan in case their original ideas are not feasible. A solid Plan B can provide security and help tackle unforeseen challenges.

Expertise over locality

Many people rely on local advice and recommendations from acquaintances, banks, insurance companies, or other "financial people," instead of consulting an experienced expert who specializes in this topic. If the expert lives nearby, that is a plus, but not a must.

Let me give you an example: You have a delicate knee operation ahead. Do you go to the nearest hospital around the corner, or do you look for an experienced specialist who has experience and promises you a higher chance of success?

Investments

The significance and complexity of investment decisions are often underestimated. Besides costs, performance is often even more critical. How often has this fund, this bank, this asset manager outperformed the benchmark, i.e., the market average, in the last 10 (or more) years (after costs!).

Moreover, I rarely see a Plan B. Your lifetime is like an hourglass, so my advice is: don't waste time with mediocrity; you are worth more. When individuals invest themselves, the high or underestimated risk is the issue, the lack of strategy, and the dangerous half-knowledge.

Expenses

Many underestimate their future expenses in retirement. I earn less and therefore pay less tax. In pension planning and budgeting, such statements are clearly relativized. It is essential to create a realistic budget according to life phases that considers all possible costs, including unexpected expenses and estimated inflation.

Inheritance Law

Inheritance law plays a central role in pension planning but is often neglected. It is important to take measures early and be clear about the legal regulations to avoid later conflicts. This is often postponed, often until it is too late.

Early Retirement

The financial and emotional impacts of early retirement are often not fully considered. It is important to carefully plan the long-term financial consequences and one's life planning, especially if one lives longer and healthier than expected.

AHV (Old Age and Survivors' Insurance)

The Old Age and Survivors' Insurance (AHV) is often overestimated. Many rely too much on the state pension without additionally saving privately. The AHV alone is not enough to maintain the accustomed standard of living.

Living in Old Age

The living situation in old age is a crucial factor that is often considered too late. Whether one wants to stay in their own apartment, move to a senior-friendly apartment, or perhaps even emigrate should be planned early.

Conclusion: Why is pension planning necessary?

Pension planning is not just about the question of whether to receive a pension or capital but about much, much more. As you have read above, there are some very important and also personal questions to be answered. Often, one does not even know at the beginning what one wants. Finding out what you really want and how you want to achieve it is precisely the task of the pension planner. The numbers are given; the question now is which path I take to Rome that suits me best and brings me many advantages.

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