What is retirement planning?
Retirement planning is the process of planning and managing your short and long-term finances to help achieve your financial dreams both during your working years and retired life. It involves analysing your financial objectives, current financial position and expected future cash flow to develop a comprehensive retirement roadmap.

What is retirement planning?
Without a judicious retirement plan in place you run the risk of outliving your savings and not being able to maintain the desired lifestyle in your retirement years. You also run the risk of not being able to accumulate enough corpus for your dependants owing to unfortunate and uncertain events like death, disability etc.

Retirement planning helps you determine how much to save today for retirement; how to invest your savings to get the desired returns; how to protect your assets and provide for in case of unfortunate events and how-to make judicious use of retirement income post retirement.

What are the benefits of Retirement Planning?
Retirement planning helps you maintain your desired lifestyle during old age. It helps you plan for key life stage events leading up to retirement. It provides financial security to you and your dependents by enabling you to make prudent investments during your working years. It also enables you to make the best use of your hard-earned money post retirement. One of the key benefits of effective retirement planning is to cover for any contingencies arising from uncertain events which can compromise your ability to meet your financial goals.

What are the types of needs and life-events to plan for?
There are various kinds of needs and life-events, some of which are listed below:

  • Buying a Home
  • Job Transition
  • Parenthood
  • Children’s Education
  • Children’s Marriage
  • Retirement Corpus
  • Post Retirement payout
  • Insurance
  • Tax planning
  • Is retirement planning relevant in India?
  • With looming demographic challenges, India faces a swelling non-working elderly population. Further, as the life expectancy of Indians increases, the number of years in retirement is also expected to increase requiring you to fund a longer retired life. Also, with the joint-family system making way for the nuclear family system, self-support during non-working years is the new world order.  Rising costs for health care and other essentials means you need to save and invest that much more and with proper planning. Therefore, a planned approach to retirement is essential.

What is the process of Retirement Planning?

  • Retirement planning is not an art but a definitive science which requires taking a 360 degree approach to studying one’s current financial health, long-term goals and risk appetite to design a plan that addresses the retirement and other long-term goals of an individual.
  • It involves a step-by-step approach:
    Step 1: Identifying your financial and retirement goals
    Step 2: Analysing your current financial situation
    Step 3: Risk Profiling
    Step 4: Asset Allocation
    Step 5: Investment Allocation Strategy
    Step 6: Periodic Monitoring and Rebalancing
  • It is essential to seek expert / professional advice and create a comprehensive roadmap based on the different stages of your life to meet your financial requirements.

When is the right time to retire?
There is no right time for retirement. Deciding whether or not to retire is a decision that only you can take. If your financial situation, health, age and feelings about your job all point towards retirement, it’s time to call it a day. Ideally you should work as long as you can. Based on individual requirements, financial stability and liabilities, you should plan your retirement accordingly.

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