Retirement is an inevitable part of life. And just like other phases, you must plan your retirement well so that you don’t face any financial issues in your old age. Read on to know more about the importance of retirement planning.
It is the innate desire of every person to be financially independent during their post-retirement life. And, if you too have the same wish, then you must prioritise retirement planning. Experts suggest that if you want to live a happy, fulfilling and financially independent post-retirement life that you envision for yourself, you must start planning for it early, right from the day you draw your first paycheque.
When you start early, you will have enough time to accumulate a decent corpus that you can use after retirement and meet your expenses without depending on anyone else.
Why is retirement planning important?
Let us understand the importance of retirement planning with an example. Riya, a 30-year-old woman, saves about Rs.7500 every month from her salary for her retirement. When she attains the retirement age after 30 years, Riya must have saved about Rs.75 lakhs, assuming that her savings grew with 8% compound interest.
On the other hand, Rahul, Riya’s colleague, started his retirement planning at the age of 40. Now his retirement corpus will be much lower than Riya’s, and he may have to compromise on several things. Hence, it is advisable to start planning and investing in retirement plans from a young age. It is the first thumb rule in retirement planning.
You may know life can be uncertain. You can never know what the future holds for you and the hardship you may face. Such unpredictability underpins the importance of retirement planning from an early age. This will give you much-needed financial protection in the future when you need it the most.
If your family members are financially dependent on you, then your retirement can affect them too. But, if you manage to accumulate sufficient funds, you can easily take care of their expenses.
No matter how much your children love you, you surely won’t want to burden them with additional responsibilities of taking care of your needs during old age. You would want to be financially independent, right? You can accomplish this life only through sufficient retirement planning.
Retirement is essentially the time when you can enjoy your life to the fullest just as you want. It is also the time to act upon your dreams, ambitions and passion. After working hard for several years and bearing family responsibilities, you can finally live stress-free. With successful retirement planning and adequate funds at hand, you can pursue your dream. It could be going on a world tour with your beloved, or starting a small business, or building a home in your favourite holiday destination.
As harsh as it may sound, the ultimate truth is that you would not be able to earn always. You would become physically weak, and your body won’t allow you to work. After retirement, what will you do? Would you still want to work for money? Or would you like to enjoy the golden days of your life? For the latter to become a reality, effective retirement planning is vital.
Conclusion
Plan for your future today to live a happy and stable life during post-retirement days.