In today’s era, it is important to do retirement planning to live with dignity and comfort in old age. This guide will tell you:
Why is Retirement Planning necessary?
To depend on your feet
Income stops after retirement
Medical expenses increase
Expenses increase with inflation
When to start?
25-30 years of age: Best time – full benefit of compound interest
After 40: You will have to work harder
“The sooner you start, the easier it will be”
Methods of making plans
- Set a goal
- How much will it cost?
- What kind of life do you want? (travel, house, etc.)
- Make a monthly budget
- Fix your savings share
- Reduce unnecessary expenses
- Make an emergency fund
- Keep a fund for 6-12 months of expenses
- Invest
- PPF (safe and tax-free)
- Mutual Funds (SIP)
- NPS (pension plan)
- Real Estate (rental income)
Best Investment Options
, Option | Advantage Risk
,
, PPF | Tax-free, safe return | Zero |
, NPS | Pension is available. low |
, Mutual Funds | There will be return in long-term. medium |
, Fixed Deposit | Stable income low |
, Real Estate | Rental income High |
Health Insurance – A must!
- Medical bills are high as you get older
- Buy a good mediclaim policy
- Cover your family too
Mistakes that should not be made
Trust only on savings
Start investment late
Do not create emergency fund
Ignore health insurance
Withdraw money from retirement fund before
Smart Tips
- Invest a fixed amount every month
- Review the investment yearly
- Share the plan with the family
- Take advice from a financial advisor
Conclusion
Retirement planning is the security of your future. Even small investments can give big returns. Save money for a cup of tea today, it can become a comfortable life for you tomorrow.
“Today’s small savings, tomorrow’s turn of dignity”