Retirement Planning... What's the big deal?

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Everybody has aspirations, desires and dreams about what they'd like to do after retirement. But the truth is that most of us are unsure if we'd even be able to maintain the lifestyle we presently lead.
According to a survey, around only 12% of the younger generation and women were confident about their post-retirement phase (this study was conducted to understand the current state of financial planning across urban India), while the rest still lived in its fear.
Financial security post retirement requires planning, commitment, patience and, of course – money! Experts estimate that at least 70% of your pre-retirement income will be required to maintain the present standard of living when you stop working. The key to a secure retirement is to plan ahead. Although this is a complex process, it can still be managed with fewer hiccups than you think. All you need is a sensible and insightful retirement planning!
What is retirement planning?
Done with the end goal of enjoying lasting financial independence, retirement planning is the process of creating and executing a concrete plan that manages your short-term and long-term finances, and helps you live your dreams even during your retired life.
Retirement planning involves the analysis of your financial objectives, current financial position, sources of income, estimated expenses and incomes, implementation of a savings programme and managing assets, and so on. Since this is a time-taking process, the earlier you start the more time your money gets to multiply.
Here's a list of reasons that make retirement planning an essential thing to do:-
How does Retirement Planning really benefit you?
Having diversified investments across options like NPS, Sovereign Gold Bond Scheme, Mutual Funds / SIP, etc. is the way to go about planning for your post retirement life.
Plan your retirement and get ready for a confident life:
Enjoy regular source of income: One of the key benefits of retirement planning is that it enables you to lead a financially secure and independent life. It also helps your dependents in your absence.
Unforeseen events? Not an issue: Retirement planning can help you protect yourself from any unforeseen and uncertain events which can hold you back from meeting your financial goals.
Celebrations/Responsibilities? Bring 'em on!: Stay financially prepared for key life events like your children’s marriage, holiday trip, etc.
Compounding effect: A long-term retirement plan helps you benefit from the power of compounding and maximise your returns from aggressive investments options.
Avail tax benefits: Till the time you reach your retirement age, a retirement plan also helps you save tax throughout the journey.
Freedom: Lastly and most importantly, an effective retirement planning protects you from having to work in your old age.
Retirement may seem like a distant possibility today. But time flies!
Make sure you don't wait till it's too late. Secure your tomorrow and that of your loved ones by investing in a well thought-through retirement plan.
If you liked what you read, check out other articles on retirement and other life journeys.
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