Retirement is that golden period in your life where you are able to live life on your terms. You can take a break from your responsibilities and focus on fulfilling your dreams such as visiting a foreign country or learning a sport. However, your retirement won’t be a smooth ride unless you plan for it from the very beginning. Financial planning is a must in order to ensure a financially
secure and comfortable retirement. You have to plan in advance to substitute your regular source of income which will stop once you retire. Nobody would like to be financially dependent on someone else during their retirement.
It is prudent that you start saving money as early as possible. It is important to remember that every penny counts. If you are able to put only a small fraction every month towards your retirement fund; it shouldn’t dissuade you from saving. Most of us start earning in our early or mid-twenties; a time when you are slowly adjusting to your new lifestyle, saving money for your retirement is the last thing on your mind.
However, this is the time when you have very few responsibilities. This is the ideal time for you start saving for your retirement; not only will you have a larger investment corpus but you will also get into the habit of saving.As you enter your 30s, you are saddled with more responsibilities. You have to take care of your family
As you enter your 30s, you are saddled with more responsibilities. You have to take care of your family and ensure that all their needs and requirements are fulfilled. At work, you have more pressure and a burning desire to succeed. You have different liabilities such as home loans and car loans. At this age, you should start investing seriously and also purchase life insurance and health insurance for you and your family.
The 40s and the 50s are when you should be the final stage of your retirement plan. You would have already made a list of all the things that you want to do after you retire; giving you an idea as to how much money you will need. Do not forget to account for your daily household expenses which will also be drawn from your retirement fund once your regular income stops.
Insurance companies have come up with a number of retirement plans to aid you in the process of saving money for your retirement. Assess your needs and requirements and choose a plan which is most suited for you.