How to Increase Your Purchasing Power in Retirement
With declining pensions and the ongoing rise in daily expenses, more and more retirees are seeking solutions to maintain their standard of living. Energy, fuel, food: the cost of living continues to increase and directly impacts the budget of retired households. In this context, real estate investment trusts (REITs) are attracting a growing number of investors looking for regular supplementary income.
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REITs: Potential Income to Supplement Retirement
The principle of SCPIs is simple: investors purchase shares of a professionally managed real estate portfolio by a specialized company. In return, they can receive regular income from the rental payments collected.
This solution is particularly appealing to retirees who wish to supplement their income without having to manage tenants, maintenance, or administrative tasks themselves.
Today, some European SCPIs offer attractive potential returns and allow for diversification across various sectors such as logistics, office space, or healthcare.
For many retirees, this additional income becomes a significant lever to increase their purchasing power.
Expert Tip: Start Preparing for Retirement as Early as Possible
Experts at La Centrale des SCPI regularly emphasize an essential point: retirement planning should start several years in advance. Gradually beginning to invest before retirement allows for the creation of long-term supplementary income and enables full benefit from the passage of time.
Even with gradual investment amounts, the potential income generated can become significant over the years. Many investors, therefore, opt to establish an SCPI strategy as early as their 40s or 50s to anticipate future declines in income.
A Practical Example: A REIT Portfolio for Retirement
Investors build diversified portfolios to seek a balance between return and risk distribution. A retiree who has invested €100,000 spread across several real estate investment trusts (REITs) can aim for an annual potential return of about 6%, equating to nearly €6,000 in gross income per year, or approximately €500 monthly.
REITs like Wemo One, Comète, or Transitions Europe are regularly considered by investors looking for returns and European diversification. This strategy provides additional income that can help absorb part of the unavoidable expenses that have become more burdensome in recent years.
Testimonial: "My REITs Changed My Retirement
Jean-Pierre, 67, retired near Toulouse, gradually invested in SCPI before his retirement. Today, he receives around €450 in additional income each month.
“With electricity, gas, and all expenses increasing, my pension alone was becoming harder to manage. My SCPI income allows me to maintain a real comfort of living and to be less affected by inflation,” he explains.
La Centrale des SCPI: Guiding Investors Toward Supplemental Income
To implement this type of strategy, many savers turn to La Centrale des SCPI, a platform specialized in SCPI investment.
With its simulation tools and the support of its experts at 01 44 56 00 23, investors can build a portfolio tailored to their retirement and supplementary income goals.
The platform also offers SCPI cashback deals, allowing for the optimization of overall returns right from the investment phase.
In the face of the enduring rise in the cost of living, SCPIs are gradually becoming a sought-after solution to supplement retirement income. While they do not replace a pension, they can offer additional financial support and contribute to maintaining retirees' purchasing power over the long term.
Warnings
Investing in an SCPI (French real estate investment trust) is not guaranteed, neither from the perspective of dividends received nor from that of capital preservation. SCPIs indeed depend on the fluctuations of real estate markets.
Before making any decision to purchase SCPI shares, seek advice from a professional to ensure that this investment suits your financial profile.
Finally, like any real estate investment, consider that SCPIs are long-term investments with a minimum holding period that should not be less than eight years.
Past performance is not indicative of future results.
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This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
