Producer: Priyanka Das Editor: Mohit Bisht
Retirement planning is important because it allows individuals to secure their financial future and maintain a comfortable lifestyle after they stop working.
Determine your retirement goals: Start by envisioning your desired lifestyle during retirement. Consider factors such as housing, healthcare, travel, marriage of children and any specific goals you may have.
Estimate your retirement needs: Assess your current expenses and estimate your future expenses in retirement. Consider factors such as inflation, healthcare costs, and the impact of changing lifestyles.
Start saving early: The power of compounding can significantly boost your savings over time. Develop a disciplined savings habit and set aside a portion of your income specifically for retirement.
Utilise retirement-specific investment options: There are various retirement-focused investment options that provide tax benefits and help accumulate a retirement corpus. These include the NPS, PPF, EPF, among others.
Consider equity investments: You may consider including equity investments in your portfolio for retirement. Mutual funds, equity-linked saving schemes (ELSS), or direct equity investments can be part of your strategy.
Review and adjust your investments: Regularly review and rebalance your investment portfolio based on your changing needs and market conditions. Consult with a financial advisor who specialises in retirement planning.
Plan for healthcare expenses: Healthcare costs can be significant, especially as you age. Consider purchasing health insurance plans specifically designed for senior citizens.
Take advantage of government schemes: The government has introduced various retirement-related schemes. Stay updated on them such as Atal Pension Yojana (APY), Pradhan Mantri Vaya Vandana Yojana (PMVVY), and Senior Citizen Savings Scheme (SCSS).
Seek professional guidance: Retirement planning can be complex, especially when considering tax implications and changing regulations. Consider consulting with a financial advisor or a certified financial planner.