Retirement Planning : It may seem strange if a person is advised financial planning for retirement as soon as he gets the first salary. But the reality is that out of every three working people in the country, only one is saving for his retirement. This has been confirmed in a 2018 report by HSBC, The Future of Retirement, the Cost of Aging. If you are also among those people who are not saving regular money for the financial needs after retirement, then start preparing for it now.
Experts in personal finance say that to maintain your current lifestyle, post-retirement income should be 80 per cent of it. Indian people’s retirement income falls by 30 percent. After all, what is the best method of retirement planning? Usually, for retirement, we consider investment in EPF (Employees Provident Fund) and PPF (Public Provident Fund) as sufficient. But 7.5 percent interest of PF and PPF will be insufficient for your future financial security according to inflation. One can resort to investing in NPS, mutual funds and its SIP schemes for a good retirement fund.
It is important to avoid these mistakes in retirement planning
Often we make mistakes regarding retirement planning. The more you avoid these mistakes, the better your planning will be. You should start retirement planning from your first salary. When you are young and not burdened with premiums for a car, home loan or separate insurance policy, as a rule, save 30 per cent of your expenses and invest wisely.
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Inflation should also be taken into account in retirement planning. At the rate of 7 per cent inflation, goods worth Rs 50 will become Rs 380 in 30 years. If you do not take care of inflation, then you will not get the benefit of investment. Always invest in a product that is giving more returns than inflation.
not getting enough health coverage
Health insurance is essential. Health problems abound in old age. Therefore, keeping in mind your family history and personal health situation, you should choose the best plan.