Retirement Planning

You Cannot Work Forever: Most of us know that we cannot work forever & have to retire. Retiring later is an alternative to increasing saving, but there is no certainty that appropriate employment will remain available. Not having employment leads to the risk of running out of money. So, you need to plan your post retirement income source in order to maintain your desired lifestyle during old age.

Beat Inflation: Having sufficient amount of money today cannot help you to maintain the same standard of living post retirement due to increase in inflation. With rise in inflation level if you have a savings account that yields lesser return than inflation rate, you’re technically losing money.

Medical emergencies: With increase in age, your body is more vulnerable and prone to diseases, and medical cost increases every year. As per a research, the average retail healthcare inflation for India was 7.14 per cent for 2018-19, witnessing a steep rise from 4.39 per cent in the previous fiscal. So, any unfortunate medical emergency could lead you to liquidate your assets, if you don’t have sufficient money post retirement.

Decide Your Retirement Age: Clear milestones help in determining the size of the corpus required.

Figure out your post retirement expenses: Estimate your expenses based on your current lifestyle, adjusted for inflation.

Analysing your current financial situation: Record all income and expenses. Determine your net worth (Assets – Liabilities) and prioritize paying down high-interest debts.

Form a proper investment strategy: Decide the amount you can save monthly. Depending on your risk appetite, form a right asset allocation. You can use our investment planner to decide the ideal allocation.

Periodic Monitoring and Rebalancing: Monitor your investments at regular intervals. Any changes in income, expenses, or retirement age need to be incorporated into the plan.