Why Retirement Planning Is Important | Financial Planning for retirement in India

Why Retirement Planning Is Important | Financial Planning for retirement in India

Retirement planning is a part of financial planning. You can increase the average life expectancy and increase the need for retirement planning. Planning for retirement not only ensures a source of income but it also helps in dealing with medical emergencies, fulfill life aspirations and be financially independent. Scrip box guides creates a personalized retirement plan and monitors it periodically to ensure the investor is on the right track.

Why retirement planning is important

Retirement planning is a consolidation of financial and personal planning. On the other hand, financial planning is budgeting income and expenses based on the personal plan. Therefore, financial planning will help you can creating a retirement fund.

Following are the reasons why retirement planning is necessary:

-First of all you cannot work forever.

-Your average life expectancy is increasing.

-Higher complications any time. e.g., medical emergencies.

-Right now is the best time to fulfill life aspirations.

-Relying on one type of source of income is risky, e.g., pension.

-You do not depend on children.

-You can contribute to the family even during retirement.

-So now start planning early and diversify investments.

Therefore, you will lead a peaceful and uncompromised life during retirement, it is essential to start planning and investing towards it.

Financial planning for retirement

Retirement is an important phase of a person’s life when the person, after decades of dedicated service, this is the time that professionals look forward to; when after years of toiling and handling responsibilities then you can enjoy their full, family time. Retirement also comes with its share of financial difficulties and unpredictable measures. The absence of a monthly income means that strain is put on the existing savings and returns from investments.

The purview of retirement does not refuse self-employed persons and like their salaried counterparts, they are bound to feel the burden of a retired life unless they have planned their finances well in advance. List of certain important ways retirement can be planned:

  1. Increase the volume of investment and increase in income:
                                                                                                                You can increase the volume of investment with an increase in income. Starting from the earlier phases. Choosing an investment that return dividends as and when required is very essential. You can always invest more when there is any such increase in earnings.
  • Start early:

It is important to start investing in your future life. As soon as you can start earning. Younger the person is at the time of commencement of relegating funds towards a retirement investment and higher is the term build up.

  • Allocate a fixed percentage towards retirement corpus:
    Investing a fixed percentage of income in a major retirement corpus can always help. One must be careful not to use any part of the corpus before retirement.
  • Keep Inflation Factor in mind while taking retirement plan:

Searching for investment and building up on that investment is important. inflation affects financial planning heavily and must never be ignored. Inflation can make returns take a plunge and therefore, while choosing any plan, you must make sure that you have taken the futuristic price-rise projections into consideration.

  • Invest in health-insurance and definite plans simultaneously:
    You cannot prime your health in your sunset years and start early when it comes to building up the financial safeguard in times of emergency. Ensures your savings and the returns from the investments made by you can not suffer due to medical contingencie

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