Retirement is an important reality for everyone no one can deny it. Most young people think retirement is a long way off and avoid doing retirement planning. However, it is important to plan for your life post-retirement as early as possible, if you wish to retain your financial independence and maintain a comfortable standard of living when you are no longer earning retirement planning is must to do.
Retirement should be the best time of your life when you can relax and enjoy your life by perusing hobbies you like. But this worry-free life is only possible if you have done the retirement planning and accumulated wealth for your post-retirement period only after knowing this reasons you need a Retirement plan.
1.Inflation.
This is one of the biggest enemies of any individual, and this will continue until life ends. As you need to worry about it you also need to account for it as well. “Cessation of work is not accompanied by cessation of expenses“.-Cato You need to take into account inflation while calculating your retirement funds as well as your expenses and accordingly you need to do investing. Early the better it is. WATCH: HOW DOES INFLATION IMPACT SAVINGS
2. Medical Emergencies.
With increasing age comes more health problems and with advanced medical technology, the life expectancy has also increased with Medical expenses which may make a huge dent in your income post retirement. Failure here could lead you to liquidate (sell) your assets in order to meet such expenses. Remember medical claims do not always suffice.So plan your medical emergency fund too, to take care of such unplanned emergency.
3. No State-Sponsored Pension Plan.
Unlike the US and UK where they have state pensions or social security benefits during retirement, India does not provide such benefits. So, you are really on your own. You need to fund your own annuity plan your own pension plan.
4. Fragmentation of nuclear families.
Gone are the days when the elderly had a family to give them support. The culture of the family is changing as couples are having fewer children. It’s vital to plan your retirement without any help from your family.With rising inflation and low income, it would be a challenge for the family to support in future if not planned well.”Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate“.-Woody Allen
5. Getting Stuck in the Savings Mindset.
People tend to get hung up on how much you save and invest every month. The amount does not matter as long as you set it aside and do not touch till your retirement with proper planning. You can gradually increase the amount that you save over time for your retirement funds whenever you have extra money, you get a salary raise, or you have finished your payments. WATCH: DIFFERENCE BETWEEN SAVING AND INVESTING
6. The Discipline of Retirement Planning.
“The question isn’t at what age I want to retire, it’s at what income“.-George Foreman. Discipline is a must in retirement planning you can even retire early if you are disciplined enough and stick to it with full commitment. Some people do plan but not care enough then they realise later at retirement time.
CONCLUSION
Now is the time when you need to make savvy investment decisions during your working life and put your hard-earned money to work for you in the future. Everyone has hopes for their retirement. But don’t be unprepared for what the future may bring, ensure that you have enough to enjoy a better life ahead!!!
PS: Ask for your CUSTOMIZED SMART RETIREMENT PLAN (SRP)
