Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

How To Plan And Prepare For Your Retirement?

Published On Jun 27, 2021 12:00 PM By InsuranceDekho

Retirement is one of the most crucial stages of life, so many things happen at once that one takes time to digest it all. Retirement brings with it the onset of old age, potential health problems, responsibilities such as children’s marriage or maybe higher education. Therefore all individuals, especially the one working on a monthly salary ( and not a business) should plan judiciously for their retirement to avoid unnecessary burden on your head. Investing in pension schemes, retirement funds will facilitate your planning. 

Apart from discharging the responsibilities you have, you should also ensure that you ensure a healthy, smooth and easy retirement for you and your family so that life keeps ongoing at the same pace and your living standards are not affected. A properly planned retirement will lead to a happy and secure future and will make you able to fulfil all your post-retirement dreams such as a trip to your favourite island or maybe a pilgrimage, proper planning will do it all. 

How To Plan And Prepare For Your Retirement?

Here are some tips which will help you sail through your pre and post-retirement journey in a smooth way and ensure that you live a great life:

1. Save A Part Of Your Salary

Set a predetermined proportion of your monthly salary away for retirement. Some businesses contribute a certain amount to an Employee Provident Fund for the welfare of their personnel. If your company does not provide this option, save at least 10% of your salary in other investing alternatives. This way you can invest the money in a policy where it grows 10 to 20 times by the time you retire so you have enough post-retirement funds. 

2. Raise Your Investments As Your Income Rises

As you generate more income, make sure your savings and investments grow at the right proportion. Instead of setting up a lump sum for retirement, you may allocate a portion of your earnings into recurring deposits, SIPs, or public provident funds through your bank. By doing this, you make sure that you are taking your retirement seriously and making multiple sources of income for yourself before retiring. 

3. Calculate Your Time Horizon

You have more time to create a corpus if you start saving for retirement at an early age. You can also take on additional risks. Starting late may necessitate more careful investments and larger savings amounts. It is highly advised that you should start saving very early in your career, keeping in mind that one day you have to retire, this not only creates a healthy balance but is important for your long term goals. 

4. Invest Into Assets Which Don’t Depreciate

Apart from investing in different types of life insurance plans, pension schemes etc. is definitely beneficial but we can’t deny the fact that they are risky too and depend on the current market scenario and the fiscal conditions. Hence, it is advised to invest in assets that don’t easily depreciate such as real estate, where the value drastically goes up with time. Once you retire, you can sell off your property and raise funds from that. 

5. Analyse Your Ideal Retirement Scenario

Make a basic plan for how you want your retirement to appear. Do you intend to retire in the city where you presently reside, or do you have another location in mind? Perhaps you'd want to relocate to a peaceful retirement community? Once you have a strategy in place, you can estimate your expenditures and plan appropriately. You can allocate funds for different activities that you have to spend at, to make it convenient and easy. 

Take Away

Planning for retirement can be equally crucial but you have to deal with it before you find out that it's too late. Begin saving early in your career, save more and more and invest your savings into assets, funds which lead to multiple sources of funds for your post-retirement life.

Also Read:

How The Money Back Policy Works?

Key Advantages of Money Back Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.   

Popularly Opted Term Insurance Sum Assured

People Also Read

Must BuyMust Buy

Why to Buy Life Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 1,50,000*
  • Claim support everyday 10AM-7PM
  • 50 Lacs+ happy customers