Gold as retirement provision

Gold can provide financial security and freedom in retirement. / Image credit: Midjourney

Today, no one in Austria should rely on the state pension alone. Individual initiative is required for a secure pension. Gold can play a key role in retirement planning and provide the desired financial security and freedom in old age.

The pension hole threatens golden years

The Austrian welfare state is certainly one of the most generous in the world. In Austria, therefore, most people still rely completely on the state pension system as a matter of course.

But there is an ever-widening gap between payments into and out of the pension system. Fewer and fewer young working people have to pay for the pensions of more and more old people.

Currently, the "pension gap" in Austria is around 25 billion euros, which the state will have to pay in from taxpayers' money in 2023. And this imbalance in the pension system will continue to worsen in the coming years: The strong "baby boomer" cohorts are retiring, increasing life expectancy means longer periods of entitlement, long-term unemployment means fewer contributors, ...

For this reason, all Austrians should take a closer look at their own old-age provision. Additional, private provisions for the retirement years to supplement the state pension are unavoidable today. The following applies: The earlier you start to take care of your old-age provision, the better.

Real assets as an important pillar in retirement provision

Anyone wishing to make private provision for old age should think long-term and focus on secure forms of investment. Security can be ensured above all through tangible assets that protect against inflation and potential currency reforms.

The classic tangible asset is certainly real estate. But buying a condominium or a house - whether to live in it rent-free or to generate rental income - simply doesn't pay off for most people. This is where the strengths of precious metals come into play. Because with gold and silver, even smaller sums can be invested sensibly in tangible assets.

Vienna Philharmonic 1 Ounce 100 Euro
Vienna Philharmonic EUR | 1 Ounce | Div. vintages | Gold coin 2.286,90 

Secure pension with gold

For retirement planning, you should buy gold in the form of bullion coins and bars. That is, in the form of physical gold that you can actually hold in your hands. For investment purposes, it is therefore advisable to buy common bullion coins, such as the domestic Golden Vienna Philharmonic, the Canadian Maple Leaf coin or the Krugerrand, as well as bankable gold bars from good delivery manufacturers.

Gold Bar | Austrian Mint | 100 Gram
Austrian Mint | 100 Gram | Gold Bar 7.317,70 

Coins and bars of silver and platinum can also be used to diversify the precious metals portfolio. However, the focus for a secure pension provision should be on the purchase of gold.

In order to compensate for short-term price fluctuations, you should always buy smaller quantities of gold at regular intervals. In this way, you take advantage of the "cost-average effect" and spread your risk of possibly buying gold at an unfavorable time.

Does gold make sense as a retirement investment?

Yes, gold coins and gold bars are excellent tangible assets for making provisions for old age and not just relying on the state pension in the future.

If one observes the gold price development over a longer period of time, it becomes apparent that the gold price has risen enormously. In the long term, the gold price has always been able to compensate for temporary setbacks. Anyone who invested in gold 30 years ago can enjoy a fivefold increase in value today.

But be careful! Although gold is considered a very safe investment, the precious metal does not yield a regular return, as do shares, funds and other securities.
Therefore, you should not bet your entire retirement provision on precious metals, but diversify here as well. It is recommended not to hold more than 10-20% of the assets in precious metals.

Note: Gold does not pay interest, but you can sell your precious metal at a higher price in the future!

Do you want to buy gold for retirement planning?

Gold is an excellent way to hedge your assets and can be seen as a crisis-proof tangible asset to counterbalance riskier investments in your retirement portfolio.

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