Many Czechs have realized that relying solely on state pensions for retirement is short-sighted. For example, only 4.3 million people have signed up for pension savings, with minimal returns on these investments. Therefore, it is advisable to consider other alternatives, such as investing in gold.
According to Martin Tomek, an analyst at Auringo.cz, “Pension savings cannot be considered as an investment. Upon retiring, many find they have only saved a few hundred thousand crowns, which insufficiently provides a decent pension for several years.”
Looking at the performance of conservative pension funds, their average annual return has been around two percent since 2000. As a result, this “investment” does not cover the average inflation rate and can only mitigate the decline in asset value. Even pension funds with dynamic strategies have been unable to keep up with inflation in recent years.
However, gold has historically been a haven for investors. Over the long term, it has maintained an average return of 7.78 percent annually. Even after adjusting for inflation, it remains an attractive investment opportunity. This is why many people are starting to realize the benefits of investing in gold, and the popularity of saving in gold has been growing in recent years.
Many people, especially those with no experience in investing, fear any form of investment and imagine the worst-case scenarios. However, gold can be a suitable starting point for growing their savings. For some time, the regular Savings Barometer has indicated that gold and other precious metals are considered fascinating forms of saving money.
Moreover, gold is more accessible to most people than stocks or other investment instruments. Geopolitical situations or market crashes do not easily influence its price, and it is typically popular among investors during such times. People can now invest their savings in gold on a regular monthly basis.
Investing in gold can be an excellent way to save for retirement, as it is a secure and stable investment proven to provide a long-term return on investment. With the rising popularity of keeping in gold, more and more Czechs are realizing its potential as a way to secure their financial future.