5 Reasons: why Retirement Planning is Important
Category : Income tax , Investment , Long term investment , Retirement
Retirement should be the best time of your life, when you can relax and enjoy your life with your loved one. This is the stage when your body becomes tired and want relaxation, So, If you wish to be financially independent and achieve a worry-free retired life, you should plan ahead for your future.
(Use our Retirement calculator to calculate how much to save for your retirement.)
Inflation is a one of the primary reason, one must take into account while planning for his retirement. As we all know that the purchasing power of money falls with time, which means we need to spend more in future for purchasing the same good & services. Thus, calculating your retirement funds as well as your expenses become essential.
With increasing age, health problems increases, as our body becomes weak. Medical expenses may make a huge dent in your income after retirement. So, if you have sufficient retirement fund to cater to any unforeseen healthcare expenses, you won’t feel to be a burden on your future generation.
Financial Freedom & Security
Investing early shall not only help you gather more funds in the future, but will also help you to achieve financial independence in retirement years.
Post retirement, your invested amount, savings and your returns on investment will help you to plan for bright & secure future.
Getting stuck in the savings mindset
People tend to get hung up on how to save every month. The amount does not matter, even a small amount starting at an early age, can help you save a huge money for your retirement. Thus the later you start, the more and the longer you will have to save and invest to reach a particular retirement amount.
Nuclear Families a trend
Nuclear family is a trend this time. In Indian societies we found it difficult for senior citizens to move themselves from their hometown and stay with their children. In some situations children are not willing to live with their parents. Thus, it is better to make investment decisions during your working life and put your hard-earned money to work for you in future. If you can manage your finances well and could gather sufficient retirement savings, you can live an independent life of your choice.