Thursday, 2 January 2014
Retirement Planning Tips For The Twilight Years Ahead
Planning for retirement has become an
integral part of every person’s planning process. Considering the fact that a
person is left with no source of income with expenses remaining constant
post-retirement, planning becomes all the more important. It is likely to
bridge the gap between expenses and income.
In the Indian context, proper planning
for retirement years can only be understood after considering the rising prices
of basic necessities. As a major number of retirees in the country are from the
government and public sector, the ones who are employed in the private sector
or are self-employed need to make their own provisions to live a comfortable
financial life in the later years.
With the process of retirement
planning being a detailed one, it requires an extensive analysis of the
financial aspects. This process can however be simplified by following a number
of easy steps. So if you are at similar stage where planning for retirement
seems important to do, here are some tips to help you in this cause.
Most of us make a mistake of not saving
in our younger years, especially when we are newly employed. Saving money for
future proves beneficial if done at any stage of life. If you start thinking
about retirement plans at the age of around 45, you are already pretty late. Even,
if you start out planning for enrolling for retirement, you can figure out the returns
by calculating the investment, monthly installments, and interest rates, through
the online retirement calculators,
which are available very easily and free. Starting out early allows you to make
full use of the magic of compounding.
Even though it seems kind of impossible
to predict as to what you will need after retirement, it makes ample sense to
make a rough sketch or estimate according to your current situation. For
example, will your children be done with their education when you retire? What
would be the marriage expenses for them? These questions need to be answered in
terms of definite money amounts.
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