Why do in I need retirement planning?

Retirement is long way off, why should I start planning now…

When your life lies ahead of you with miles to go and milestones to cross, retirement remains a distant speck and is usually the last thing on your mind. You probably think its ok to push the decision for later. But unlike other goals like housing, your child’s education and marriage that can be met by borrowing, retirement expenses cannot.

Why do you work till you drop all your life because post retirement you wish to live the comfortable life that you always envisaged, lazing in a recliner in Goa and enjoying the breeze blowing through your hair. Unwise planning can sadly put you in a spot. Especially if you realize that you have not saved enough at the brink of the retirement.

Also, there is a Retirement Insurance Company which planning for retirement means planning for as many as 25 to 30 years, which is as long as Sachin’s career. Turning your children to take care of you is not really an option as running two household in not easy. But wait it’s not all the downhill, the key is to start saving early so that you have enough for your golden years.

Start today with small monthly contributions to build up your ideal fund. However, the more you defer it, the more you will need to save every month to build the same fund.

Also, experts may tell you that your expenses will inflate astronomically in your later years. But the truth is that with a reduced family size no daily work commute and a simpler lifestyle, it may not be that bad.

You can heave a sigh of relief now and wipe the sweat off your brow. What you will spend post retirement determines how much you need to save today.

There is more to estimating your expenses at retirement than just simply inflating your current expenses at the Consumer Price Index.

Conventional financial planning suggests taking your current expense levels and inflating them by the prevailing consumer price index, to arrive at expected expenses post retirement. The next step is to then arrive at a corpus or sum of money that you need to put aside that will provide for the given expenses. However, the Big Decisions inflation index as shown in the table below, shows the more likely expected inflation levels in a given age band.

Our index indicates a lower than conventionally expected inflation of expenses for retirement and, therefore, a lower amount of savings and investments will help the family's primary income earner to meet the goal.

Our well-researched tools, blog posts and videos help you navigate this decision.

Retire from your job, not from the lifestyle you always desired and deserve!

[Source: https://www.tomorrowmakers.com/articles/retirement/why-do-in-i-need-retirement planning]