Showing posts with label retirement plan. Show all posts
Showing posts with label retirement plan. Show all posts
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.
Tuesday, 31 December 2013
Building Up A Savings Plan For Retirement Years
Planning for retirement has somewhat
become mandatory these days. Especially in a country like India, where we don’t
have any real social security system in place, future planning needs to be
done. We see so many people getting worried about retirement that they even
feel like continuing their job or profession beyond the age of retirement.
Adding to the facts, there are around 70% individuals who claim to not be able
to meet finances after retirement.
So, if you want to avoid being in a
similar state later, it’s advisable that you start with a savings plan from now itself. First and foremost, you need to start
investing as early as possible. An early start will give you the benefits of
compounding later in life. After years and years of savings, you might be
having more than sufficient wealth to live with.
The habit of investment should come
before spending. Each month, we have some or the other expenses to pay off like
electricity bills, phone bills etc. So make sure you have some money kept aside
for such payments beforehand.
While going about searching for an investment and retirement planning, you much select a tax free investment plan. Over the years,
PPF (Pension Protection Fund) has been proven to be one of the best savings
plan that is retirement friendly and
a tax free instrument. Pretty similar to PPF there are ELSS (Equity Linked
Savings Scheme) that might serve you well as an investment plan along with being tax-free. Also, if you are thinking of
investing money for retirement purposes, it is recommended that you not put all
the money under one scheme. Rather consider diversifying your portfolio. If you
don’t diversify, there is a risk of losing all your investment and limit
returns over it.
When calculating the retirement corpus,
people often tend to forget some of the important future expenses. These may
include essentials like medical cost, household expenses and much more. So make
sure each one of these are included.
