The amount of a person's pension differs greatly from one status to another. The pension of a civil servant is on average three times greater than that of a self-employed person. Let us have a look at the 'intermediate' category of private sector employees.
An employee from the private sector receives on average a pension of approximately €1,200. This is the actual amount received by employees (taking into account those who have not had a full career). This corresponds more or less to the overall average in our country.
Note that as of 01/01/2018, the minimum pension guaranteed corresponding to a full career for an employee is slightly higher, i.e. €1,525.60 (for a household) or €1,220.86 (for a single pensioner).
Should there be a supplement?
Thankfully, for employees in the private sector, there is the second pillar of the pension system. This is the perfect possibility for them to supplement their pension. The second pillar of the pension system is a pension which is linked directly to their professional activity and is built up in the framework of this activity. It is always optional. In the case of employees, group insurance is the most well-known example of a pension of this type. The popularity of this system is due to the fact that it is truly worthwhile as a supplementary pension for the employee, and to the fact that this system is worthwhile for the employer from a tax perspective.
Employees may also take advantage of the third pillar of the pension system to increase their income during retirement. Pension savings and/or life insurance are therefore interesting solutions in their case, as a supplementary pension during retirement, as well as from a tax perspective during their working years. And, like the two other statuses, the fourth pillar – namely, individual savings with no tax benefits, or in other words, personal wealth– is just as important for employees.
Private sector employees may not be the most privileged pensioners, with their pension being not far from the national average. Nevertheless, they may do certain things to ensure that their retirement is a little more comfortable.