Get Prepared with Retirement Planning – Khansis Prime Wealth
Beginning to think about retirement can be a multi-step process that evolves over time. There are a lot of aspects and steps involved so it’s important to take the time and really think through your planning strategy, including building up a financial cushion to fund your life post-retirement. To reach your goals, you will need to consider how long you have until retirement, what financial goals you wish to accomplish, after this point is established, it is necessary to invest that money in order to allow for the growth of its value.
Retiring can be an extremely vulnerable time for those who are unable to maintain the level of income that is required during retirement. There are health and financial risks associated with retirement which make this period in life very scary. Avoid the confusion and uncertain financial projections of retirement with prior planning.
Benefits of Retirement Planning
Strategic retirement planning is imperative in today’s world to deal with shortfalls and emergencies in the retirement period. This also helps in gaining proper control over the cash flow, expenses, and earnings.
Let’s a took at top reasons for retirement planning
- Medical expenses – With age comes health emergencies that could cause a financial dent in the post-retirement phase. While some might claim that health insurance policies are enough, there are certain uncalled expenses that are not covered by insurance plans. Thus with a thoughtful retirement plan, one can accumulate enough wealth to meet all medical expenses.
- Inflation– Inflation is increasing day by day. The effects of inflation can be felt in the long term. That indicates that one will pay more for everything including medical, groceries, travel, etc). One can take care of varying inflation rates with adequate funds through mindful retirement planning.
- Unplanned expenses– Uncertainties can come at any age and one must be prepared beforehand. Strategic investments in retirement planning can help one deal with any emergencies and lead a stress-free life.
What is the best age to begin retirement planning?
There is no such thing as a perfect age to think about retirement planning. Early retirement planning is recommended for adequate fund accumulation. An individual can begin planning for his retirement at the very beginning of his career for stress free retirement. Therefore with proper retirement planning, one can achieve his desired retirement goals and live a peaceful life.
Let’s understand how early retirement planning can create a huge difference.
For example, Mr. Ram who is 25 years old starts planning for a retirement corpus of Rs.2 crore, which he will need after 35 years or at the age of 60 after getting retired. By saving or investing a small amount of Rs.4000 per month in mutual fund sip which can give 12% return per year, Mr Ram will overachieve the target and will be able to accumulate Rs.2.3 crore apx. In case, if he decides to start saving or making investments after 5 years i.e at 30 years then he will be able to accumulate a corpus of Rs.1.2 crore apx i.e. half the fund by 60.
We can see how just a gap of 5 years can make a difference in the future. Usually retirement planning can be divided into 3 broad phases – investment phase, accumulation phase and withdrawal phase. An individual usually invests as per his financial capabilities during the investment phase while enjoying the returns in the withdrawal phase. One can withdraw funds as a lump sum or as monthly income.
Having said the above points, we can easily understand what importance a strategic retirement planning holds in an individual’s life. Khasnis Prime Wealth guides you at every phase of your retirement planning with customized plans that enable you to lead a stress free life post retirement.
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