Retirement refers to the time of life when one chooses to permanently leave the workforce behind. The traditional retirement age is 65 in India.
How much money do you need to retire comfortably in India?
You can be truly financially emancipated if you can sleep easy with the assurance that all your goals will be reached. Your financial freedom survey shows that people are more confident of achieving their goals this year compared to last year. Financial freedom is not the quantum of wealth but the quality of wealth. So a secured retirement is important for life. It is never too early to start planning for your retirement. In fact, you will put yourself in a wonderfully sweet spot if you start planning for your retirement early on. Once you start, continue investing for your retirement in a disciplined manner. This is where retirement plans can play an integral role as they not only help you create the desired corpus but also inculcate investment discipline.
How To Plan Your Retirement
A pension plan will secure your life post-retirement. as an example, say you’re currently 32 years old, earn a monthly income of INR 50,000, wish to retire at 60 years, and expect to measure till 80 years. the primary thing that you simply got to do is assess the quantity of cash that you would require on a monthly basis during retirement. For this, you want to consult a financial advisor to assist you to identify the subsequent steps:
- Calculate your current and expected future income, including income from investments (I)
- Calculate your current expenses and estimate outflows during retirement (II)
- Need to Calculate your requirement – this is often the difference between (I) and (II) and can tell you the quantity of cash that you simply require to steer a cushy and secure retired life.
To achieve this, you would like an appropriate pension plan. supported calculations that take into consideration an expected rate of return and average inflation over time, you’ll start contributing a particular sum of cash to a pension plan. this is often how it’ll work.
7 Benefits of Early Retirement Planning in 2021
- Tax benefits of retirement plans
- Safeguard your assets and have a secure future
- Better returns on your savings
- The power of compounding for retirement corpus
- Unprecedented emergencies
- Support your dependents
- Start early for maximum benefits