Retirement planning is important to establish your sources of income post retirement to secure your retirement financially. It is crucial to financially plan for the period of life when you would not wish to work.
With increasing life spans, retirement planning is a must to live a comfortable life in your old age.
Retirement Planning is just like any other budgeting exercise, decide your income and expenses, for now and future. Build up your income keeping in view, the lifestyle you want to have post retirement.
One has to estimate longevity for self and dependant spouse to determine the corpus of money required when you are no longer working.
When do you wish to retire? This has a bearing on making up the shortfall you have on the desired retirement corpus.
How much money you would require for the number of years after retirement with the lifestyle you want to maintain considering inflation.
Assess your present assets,liabilities,guaranteed incomes like pension, insurances your other personal and family financial goals.
Depending upon the estimated money required and current resources, decide the investments to accumulate the required amount post retirement.
Keep reviewing and altering your portfolio periodically depending upon intermittent financial needs, change in sources of income and variation in returns because of market conditions.
Saving for your retirement should be treated as a long-term, regular expense within your household budget and setting aside small, regular amounts and investing into right asset class will lead to a happy retirement. Do not delay, starting early will ,leave you with more time to save, invest and earn returns. Consult a SEBI Registered Investment Advisor because this assures you of zero commission, compared to a certified financial planner.