Give yourself the gift of an enriched retirement. Invest ahead of time and make a smooth transition into your retirement years
67% of retired individuals in India continue to work to make ends meet and every 7 out of 10 adults rely on their kids post retirement. The data points to the retirement unpreparedness of consumers and a lack of awareness of their retirement kitty.
Invest today to experience a comfortable lifestyle after retirement
Why is it important to have a retirement plan?
The dictum “retire young, retire rich” is catching on like wildfire. Yet, a large majority of people are found to be relying on their provident fund (PF) and gratuity for their post-retirement life. The truth is, this amount just takes care of 30% of your post-retirement corpus requirements. So, how should one plan for retirement?
What are the factors to consider when making retirement investment decisions?
When starting out, think about what your life may look like after retirement. Write down your retirement goals. Take into account the high rate of inflation that stands at 6.77% as of today and most prone to affect retirees or those closer to their retirement. Simply put, two decades ago you could have purchased a lot more than what you can with Rs. 1 crore today. So, even after saving for two to three decades, if you manage to save Rs. 1 crore or a little more, the worth of this value at that time will be much lesser. Your routine expenses like food, housing costs, and healthcare, and the income you may receive in your post working years, like rent, pension, and social security payments may take a hit as well. Based on your expenses and revenue, you will be able to determine the magic number to beat for retirement.
How to invest for retirement?
In an ideal situation, it is best to inflate the cost of the goal and accordingly start investing to avoid any insufficiency in the future. Alternatively, save 80% to 90% of your yearly pre-retirement income or 12 times your pre-retirement salary. You can make it happen with a host of investment options such as life insurance policies, bank FDs and RDs, real estate, physical gold, mutual funds, NPS, stocks, and PPF. These investment instruments can be a guide and not a gospel – as everyone’s situation will vary. The key is to invest enough and in assets that help you grow your money, beat inflation, and enjoy your retirement to the fullest.