How should I plan for my retirement or for the “golden years" of my life?” This is a persistent question lurking inside every salaried individual’s mind in today’s world. A good salary only offers a comfortable lifestyle for the immediate future. With rising inflation, individuals are not able to save sufficiently for their future, while tending to their routine commitments.
Retirement planning is a tedious task for salaried professionals in India. Ideally, retirement planning should start from the day an individual starts getting his first pay cheque. There is no good time to invest in future savings, every day counts.
This should be the motto for every individual seeking to spend his retirement years in comfort and with adequate financial security. While planning to save for retirement, it is important that the right type of product is chosen and the right method is implemented. Foreseeing future requirements, individuals should ensure that they have enough corpus to cater to the needs of their family.
What's best way to save for retirement?
Retirement planning depends on two things. Based on the family’s or individual’s requirement, funds need to be allocated for the future and the income earned has to distributed in such a way that the individual gets maximum benefits and monetary returns, when he is entering his golden years.
While planning out for retirement, you always need to ensure that a certain investment pattern is followed. List out the resources from where funds can be directed into your retirement savings. Here’s what you have to do to have a solid plan:
Which products will help you save?
Once you have allocated the required funds for retirement, the question will be as to what you will invest that in? Agreed, that this might change along the years, but when you start off initially invest in high return products.
Should you save even after retirement?
Yes, it is possible to save even after your retire. Financial institutions offer specially created senior citizen savings schemes with competitive interest rates for the benefit of retired employees. Continue to invest in a pension plan and fixed deposits, which get you high returns with the deposit of a lump sum amount.
These schemes provide senior citizens with a monthly income that generally suffices for their day-to-day requirements. Medical emergencies can be addressed with adequate health insurance cover, which is a must-have for every individual planning a tension-free retirement. Finally, it is never a bad idea to have some liquid funds saved up for your retirement, other than your planned investments. These will take care of smaller requirements and even emergencies to an extent.
So, go ahead, plan your retirement now, secure your family and look forward to a memorable life once you walk into the other side of sixty.
