subject: Financial Planning For Retirement [print this page] Following are few pointers that are to be kept in mind when planning for retirement:
The lifestyle of an individual is a detrimental factor towards maintaining retirement corpus fund. For example, if one is used to eating out at fancy restaurants, going to exotic trips or international travel often, they would need more money to be saved, if they wish to continue the same even after retirement. Apart from this the fluctuations and the changes in the cost of living should also be kept in mind. One way to look at it is the current monthly expense with a default 10% hike can be saved as part of the retirement corpus fund to retain the same standard of living.
Inflation keeps going up and one has to bear in mind that it plays an important role in maintaining ones lifestyle. It might be an expense now with a regular monthly income coming in, but might be cumbersome when one retires.
Take all the sources of income into consideration when planning for retirement. Some people might have other sources of income apart from their job like a business, agricultural land, leased property etc. This can also help in adding up to the retirement corpus fund.
Banks offer various planning schemes for retirement in order to encourage savings for the future. When opting for any of these options, it is advisable to check on the interest rates and the rate of returns in case of any investments like stocks, shares etc. Most of these options can be maintained till the person retires so are a huge advantage.
It is always better to start planning for retirement from the time of joining a job. However, it is not followed mostly because of the other priorities. When one decides to start saving for retirement, the first thing to consider is the number of years left till the retirement. This will help to organize and plan carefully.
The other factor that also has to be considered is the health condition. Most people would know their health condition after a certain age and can roughly predict the life expectancy. In such cases too, there are options which can provide for the family and also focus on planning retirement finances in a much more beneficial manner.
It is always better to foresee the possible outcomes than sit back and face them. When one is prepared for the worst to happen, then there would also be back up to fall back on. Unlike yester years people cant rely on their children post retirement.
by: Harsha Maitra
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