Get, set & be prepared for the old days of your life…

We all intend to live with wonderful lifestyle, fair amount of bank balance and have happy family life. For this we constantly work hard, earn money and stay so much focused in making our present so beautiful that we end up ignoring the future. Yes, future is the most vital part of your investment planning that we tend to keep delaying. We splurge money on present needs and retirement planning does not surface in our immediate savings plans. But working out a sound retirement plan is equally important and in India. Let’s understand how. Researchers say the number of Indians above 60 years is projected to rise around 55% by 2050. With rising lifestyle patterns, improved medical facilities, awareness on health; the average age of an old citizen has now shifted to around 60 to 90 years which indicates an increasing longevity. Secondly, the traditional pattern of joint families have now diverted to nuclear family system. Therefore, it is crucial to secure future with good financial backup.

Here are few points that should be considered while choosing best retirement plan.

Start Early

Starting any plan early gives one many advantages. Most of the time, retirement planning is neglected. But, if you start late you will end up paying higher cost and get lesser time to pool your money across markets and produce the requisite results. This will ultimately lead to options like living a sedentary life or fulfilling the dreams. So starting early helps you to pool your money in equity funds, book profits and move them to debt oriented funds. But, it totally depends on your risk taking ability.

Planning

Everything has to be planned in the first place. Understand your retirement needs first, your dreams and purpose of finances required. When you plan for retirement, you must make a point to set aside money for medical expenses and contingencies, as any retirement funding without them is incomplete. So, there are set of needs which have to be analyzed carefully and then accordingly you should worked on your plan.

Consult Financial Expert

Since retirement planning is investment pertaining to future needs, it is advisable to speak to financial experts. They will be able to guide you on the performance of particular fund, its progress graph, market movements etc. This will help you working out your retirement plan well. While you decide how you wish to lead your life in retirement, your financial advisor will help you translate that dream into numbers.

He will put a number to everything i.e. your dream house, vehicle, post-retirement income, medical expenses and contingencies among other inputs. This will help you go on a right direction so as to achieve your retirement corpus.  Thus, he will outline a roadmap and more importantly, will implement the same for you.

Tracking & Reviewing

Retirement planning is a future investment. Therefore, it is important to track the progress of your funds time to time. If particular fund is not working for you, you might discuss with financial advisor, sack it or switch funds to bring results in your favour. Over the time as you approach retirement; reduce allocation to risky assets like stocks and/or equity funds in favour of more conservative avenues like fixed deposits.

 

Don’t Use retirement earning

Retirement money is strictly for your dusking days. You may think you might use the profits today and then pool in the money as and when it comes. However, future is unpredictable because of which our entire purpose of Retirement Plan Company comes into picture. So, it is going to be pointless if you have to utilize your retirement funds now in present needs and then struggle in the old days.