Thinking about what your future holds, can often leave you feeling confused and stressed. The good news is, there’s nothing that can stop you from being the master of your own destiny and taking control of the future.
You just need to indulge in proactive planning that provides you with a better idea of where you need to be and how to get there. This mantra is successful for every stage of your life, especially when it comes to retirement planning.
For most of us, the idea of retirement does not even pop-up in the foreseeable future. But if you wish that your retirement life be blissful, plan for it well in advance. Early retirement planning helps you in avoiding the last-minute hassles and allows you to choose options that provide you security while providing value for money.
In this article, we have jotted down certain tips that will help you in proper retirement planning. Read on to know more.
Tips for Proper Retirement Planning
- Start as Early as Possible
For most individuals in their 20s, retirement planning is usually the last thing that crosses their mind. But while retirement may seem a far-off proposition, your 20s are the best time for you to start saving for your golden years. Investing early—say 30 years before retirement would enable you to create a corpus to help live your dreams. The period of 30 to 40 years is enough to make our money grow by at least 3 or 4 times.
However, if you procrastinate your retirement planning, it would lead to loss of time and henceforth money.
- Ensure You Have Appropriate Health Cover
Health plans form a very substantial part of retirement planning. Like life term plans and investment plans, it is wise to buy a health plan early. Health insurance, when bought at a young age, is economical. Moreover, the waiting period clause that comes along with the insurance also gets taken care of while you are young.
- Be Wary of Inflation
Inflation has been and will always be one of the main reasons behind high expenses. Therefore, considering inflation is crucial before planning for retirement.
The amount saved today wouldn't be sufficient for survival 25-30 years from now. Therefore, it is crucial to consider the rising inflation rate before planning for your retirement. thus, preparing yourself of any financial crisis later in life.
- Don’t Rely Only on Your PF Account
Most people in India think that their PF account balance will be enough to cover their post-retirement expenses. However, they could not be more wrong.
When it comes to retirement, you would want to relax and not worry about different aspects of your life. But what if something comes up and you have to spend all your PF savings on it? That can trample your dream. So, financial experts advise that you must also invest in pension plans as a back-up.
Pension plans act as your back-up in case your PF account balance falls short of covering your post-retirement expenses. These plans also come in handy in getting tax deductions under Section 80C of the Income Tax Act.
Moreover, we at Future Generali offer a single premium pension plan for customers who not wish to engage in regular premium payment option. In this plan, you pay a single premium to the insurer and receive money in the form of monthly payouts after that. These plans are highly effective for people who have a good sum of money near retirement and do not know where to invest it.
In your 20’s, your retirement will indeed seem far. You might want to spend your money on gadgets, travel, shopping rather than saving for retirement. However, it is vital to know that no one can afford to be at somebody else's expense after retirement. Therefore, planning for retirement at the earliest is imperative. Once you aim to achieve harmony with your finances, everything else will fall into place.