Retirement is approaching, and this is not the moment to gamble with savings. It is the time to lock in earnings and secure financial gains for the years ahead. This principle becomes clear as individuals approach their 50s and begin to plan seriously for life after work, a transition that may come sooner than expected.
According to the National Institute of Statistics, the average salary for Spaniards aged 55 to 59 today sits around 28,240 euros per year (2,354 euros monthly) and the average pension stands at 1,372 euros. From age 67, a shortfall of roughly 982 euros per month may appear if the goal is to maintain the same standard of living without adjustments to savings or income streams.
Experts advise adjusting savings strategies across a career to pursue higher returns while preserving or raising the standard of living upon retirement. A longer time horizon helps, starting earlier in life, ideally at 40 and if possible at 30. If those years were not feasible, the essential move is to begin saving in a disciplined, systematic way with a long-term outlook.
Financial advisors also emphasize consolidating earnings and maintaining a conservative risk profile to minimize exposure. Eva Valero, Director of Life Savings and Retirement at Caser, suggests gradually shifting from variable income to fixed income for those who want to recover savings by age 65, while still hedging a portion of risk. Patricia Suárez, president of Asufin, highlights reinforcing gains with monetary or guaranteed products.
Investing in the final years before retirement depends on income levels and future plans. If income is high and there is a desire to support a dependent or successor after 65, it may no longer be necessary to tie a pension plan to fixed income. The key question becomes not when retirement will occur, but when funds are needed, notes Dositeo Amoedo, president of the Association of Educators and Financial Planners (AEPF).
Funds or SIALP
The move from savings to investment can be facilitated through financial products such as mutual funds, which typically offer favorable tax regimes, transferability, and taxation on profits only after withdrawal of capital from the investment.
Funds present a comfortable option for investors who prefer not to monitor daily market fluctuations. They provide diversification, favorable tax treatment, and investment profiles suited to various time horizons and audiences.
Another instrument that may appeal before retirement is SIALP (individual long-term savings insurance). The annual limit is set at 5,000 euros, and if the policy is maintained for at least five years, capital gains are not taxed at withdrawal. This can be attractive when there are fewer than five years left to retire, according to Amoedo. If the horizon is longer, SIALP may be less profitable and could erode purchasing power over time.