Producer: Priyanka Das Editor: Sujata Singh
Experts suggest that the earlier you start saving for retirement, the more time your money has to grow through compounding.
Determine how much money you’ll need for retirement based on your expected expenses and lifestyle. Consider factors like inflation and healthcare costs.
Create a budget that outlines your current expenses and income. Identify areas where you can cut unnecessary spending and allocate those savings toward your retirement fund.
In India, you may consider opening a tax-advantaged retirement account such as the Employees’ Provident Fund (EPF), Public Provident Fund (PPF), National Pension System (NPS), or a tax-saving Fixed Deposit (FD).
Diversify your investments across various asset classes like equities, fixed-income instruments, and real estate to spread risk. Consider consulting a financial advisor.
Try to avoid unnecessary expenses and impulse spending. Prioritise saving for retirement by setting up automatic transfers to your retirement account as soon as you receive your salary.
In addition to tax-advantaged accounts, you may explore other investment options like mutual funds, stocks, and bonds. Diversifying your investments can help you achieve better returns.
Include healthcare costs in your retirement planning, as medical expenses tend to increase with age. Consider purchasing health insurance policies that offer coverage for senior citizens.
Maintain an emergency fund to cover unexpected expenses, so you don’t have to dip into your retirement savings during emergencies.
It’s tempting to use your retirement savings for other expenses, but it’s important to resist the temptation. The money in your retirement savings is there to support you in your later years.