How should employees plan for retirement? Employee Benefits the Ultimate Guide to Retirement Planning: A Step-by-Step Approach.
Retirement Planning Mistakes to Avoid at All Costs: Adequate financial planning is very important to maintain the current lifestyle after retirement.
Everyone
has an idea of what life will be like after retirement. A retirement
plan is more important than all the financial plans that a person
implements.
Because salaried employees budget every expense of their income and
overspend. Therefore, proper planning should be done in advance even for
retirement.
better life after retirement. Among these, there are many retirement
investment plans available, especially National Pension System, Public
Provident Fund, Employee Provident Fund. Some plans offer tax benefits.
Equity plans are also playing a major role in retirement planning in
recent times.
Retirement planning investment
Effective Ways to Maximize Your Retirement Savings: The sooner employees start saving for
retirement, the better. In the long run, you can accumulate a large
amount of funds. It helps to spread the investments over a long period
of time.
to retire?
should also be in place for unexpected events such as illness or job
loss. Estimate how much money you will need each year during retirement.
What is a good goal for retirement? Retirement goals
Retirement
goal is most important for any individual as compared to other goals. A
loan may be sought for other purposes.
postponed. But in case of retirement you can’t get loan..can’t defer it.
Hence it is essential to have a clear understanding of retirement
goals.
the lifestyle you want to maintain after retirement, and other financial
goals.
A planner for investment diversification – Financial planning
The Importance of Diversification in Retirement Planning: Retirement
fund is always safe by investing in different types of assets. This
includes equities, bonds, mutual funds and government guaranteed savings
schemes.
risk you can afford and your financial goals. If you don’t know how to
plan for retirement, it is essential to consult a financial planner.
right investment schemes for creating a retirement plan.
financial planner who is a registered investment advisor, especially
experienced in retirement planning, is essential.
What to consider when investing money on property?
Many
people spend a lot of money to buy a house after their retirement so
that they can rely on house rentals.
expect that renting a house will help you in your retirement.
Maintaining an old house (property) is very difficult when you are old.
can be used for reverse mortgage when you do not have adequate pension.
the bank agrees. Hence it is not advisable to rely entirely on
traditional sources of income for post-retirement expenses.
List of expenses for retirement planning – Moneycontrol retirement planning
How to Navigate Social Security Benefits in Your Retirement Plan: Solving
many problems in life becomes easier when you have a steady source of
income. Estimate your retirement expenses.
living expenses, health care expenses, travel expenses, and other
expenses you incur during retirement. It is essential to consider the
effect of inflation when estimating your expenses.
current monthly expenditure is Rs.50 thousand.. If we consider 6%
inflation per year, after 20 years it will cost approximately Rs.1.6
lakh per month. After retirement you need a lump-sum of fund to continue and maintain the current living standard.
What is the best way to start investing money?
Creating a Realistic Retirement Budget: What You Need to Know: How
much should you save to maintain your current lifestyle after
retirement? Take a look at these investments to make you clear.
monthly initial investment of Rs.38,000 is required to earn Rs.3.98
crores in next 20 years. This investment can be invested in 40% debt and
60% equity. That means Rs.15,000 should be invested in debt and
Rs.23,000 in equity.
Assuming a return of 8% from debt and 12% from equity on these
investments, debt will return Rs.88 lakhs and equity will return Rs.3.15
crores.
in the markets so far. But, sometimes there are losses on equity
investments. It is necessary to take the advice of a suitable financial
planner while investing in these.