Most people will advise you to start retirement planning just a few years into starting your first job. That is an ideal scenario. It is not possible for everyone to do so with student loans and other responsibilities. About 60% of Indian millennials do not have a plan for their retirement. For a lot of youngsters, it gets easier once they are in their 30s or 40s and settled. Here are some of the best options for these age groups to acquire a good proportion of wealth to sustain after retirement.
Why is retirement planning important?
Retirement planning doesn’t mean one should only concentrate on their finances. Retirement planning requires a combination of financial and personal planning. Personal planning determines one’s satisfaction during their retirement.
On the other hand, financial planning helps in budgeting income and expenses based on the personal plan.
Primarily personal planning revolves around the question ‘how does one want to spend their retirement?’ Having an idea of how retirement should be will help in determining financial needs. For example, some might want to travel the world during their retirement, while others would like to learn a course or two, or volunteer at an NGO. The retirement options are endless.
However, having an idea about how one would want to spend their retirement is the first step towards retirement planning.
The lifestyle needs and preferences will help in estimating the finances. Therefore, financial planning will help in creating a retirement fund.
Following are the reasons why retirement planning is essential:
- One cannot work forever.
- The average life expectancy is increasing.
- Higher complications, e.g., medical emergencies.
- Best time to fulfil life aspirations.
- Relying on one source of income is risky, e.g., pension.
- Do not depend on children.
- Contribute to the family even during retirement.
- Start planning early and diversify investments.
Therefore, to lead a peaceful and uncompromised life during retirement, it is essential to start planning and investing towards it.
Retirement: A Rewarding New Chapter
Remember that retirement is not just about financial security; it’s also an opportunity to pursue your passions, travel, and spend quality time with loved ones. – Embrace this new chapter of your life with enthusiasm and a well-thought-out retirement savings plan to support your dreams and aspirations.
In conclusion, creating a retirement savings plan at any age is a proactive step toward securing your financial future. Whether you’re in your 20s, 40s, or 60s, there are strategies you can employ to build a strong foundation for retirement. The key is to start early, make informed decisions, stay disciplined, and adapt as necessary. With careful planning and consistent effort, you can look forward to a financially comfortable and fulfilling retirement.
