Published on : 19 May 20203 min reading time

On the face of it, the management of a retirement capital requires the development of a whole range of different strategies. And, as far as possible, you should always make provisions for savings. And, afterwards, care must be taken to ensure that the strategies applied are adjusted to meet specific personal or family needs.

Diversification of assets remains essential

For a better success in retirement, one must strive to build a diversified heritage. However, the practice of naïve diversification should be avoided as much as possible. Indeed, the distribution of a life insurance in several companies is not sufficient because of the linkage of each of their performances and does not lead, precisely, to the envisaged result. To this end, the successful investment of a retirement capital consists in planning for the long term. In any case, the life insurance premiums paid periodically over the years are capitalized and the related savings remain accessible at all times.

The conversion of an invested capital into an annuity proves to be necessary

In any case, it has been identified that life annuities have specificities that should not be lost sight of. Among other things, thanks to the adoption of annuities, it is possible to benefit from an income that can be spread out over an unlimited period of time so that you no longer have to worry about managing your savings. Moreover, the continuity of income collection is guaranteed in perpetuity. Thus, the conversion of capital following the purchase of life insurance from the insurance company allows the benefit of a life annuity. In any event, some insurers provide within the contract terms for the possibility of a transfer of a portion of the capital to the designated beneficiaries in the event of the early death of the policyholder.

Protection against dependency remains the best protection

Indeed, according to studies carried out in the context of the analysis of the evolution of loss of autonomy in old age in society, it has been identified that 2.7% of the population reaching the age of 60 to 70 years is concerned by this evolving imbalance. And, in the interval between 80 and 84 years of age, the identified rate may be around 14.3% of the observed sample. In any case, it turns out that the cost of the loss of autonomy can reach a fairly high value, however, the financing of such an expense allows coverage against any risk of dependency in the old age period of the person concerned.