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Retirement Planning
Retirement Planning
An effective retirement plan is a must have for everyone. There are plenty of insurance companies and mutual fund houses that offer various pension schemes with different options and other plans to help you generate wealth. Even if you have already reached your desired savings, these plans will still be a very important part of your investment portfolio. But there are some factors you must consider before going ahead with your retirement planning.
  • Life expectancy has improved tremendously. As per some study, it is expected to go up to 80-85 years in the coming few years. Therefore, increased life expectancy means increased expenses which in turn means you need to have surplus corpus to meet those outflows
  • Rising inflation can deplete your savings. So creating a retirement plan, taking into consideration the future rate of inflation, will help you save up more realistically. In simple terms, it means your corpus should be able to beat the inflation rate at the time you retire
  • There isn't anything fixed or guaranteed in today's time. The time when Government defined schemes gave them guaranteed lump sum payouts or pensions are long gone. So, it is advisable not to depend on organizational or to say any social security system of the county, rather make a plan for yourself
  • The pension that you may receive is likely to fall short during your golden phase. Retirement planning ensures that you have enough to keep you secured financially
  • Beginning the process of saving and investing early. This will enable you to create an adequate corpus for the fulfillment of your child's desires and ambitions
  • The financial decisions will determine your asset allocation and portfolio mix which will be backed by your risk tolerance level and risk appetite
  • Saving for other priorities during various stages of life as well
  • Help in maintaining the right product mix for the best returns
  • Maintaining adequate insurance cover to cater to expenses of children which may arise due to unfortunate and untimely demise of the earning member
  • Ensuring to keep insurance and investments separate