Retirement Planning is most crucial since an Individual has three phases of life viz., childhood phase, adult phase, and old phase. The more energetic adult phase is followed by the less energetic old phase of life. Due to the lesser capacity of doing work in the older age, a person gets retired from his workplace. Retirement Planning helps a retired person to spend a tension-free retired life.
If a person has got retirement from their job, it doesn’t mean he has been retired with his life as well. Some retired people wish to perform more adventures after their retirement. For getting enjoyable and tension-free retired life, an individual has to start planning from his adult phase of life.
Contents
What is retirement planning?
It is a set of preplanned events and goals for the old age of life that is the life after retirement from the workplace. After retirement, time is going to be more precious to those people who want to fulfill their dreams which they have left in the past because of the lack of time.
In retirement planning, a person should focus on both financial and personal plans. It is multistep and regular time taking process.
Stages of retirement planning
- Young adulthood stage (age 21-35years)- In this stage of life, a person can go for mature investments with higher risk category like Equity and Mutual Funds.
- Early midlife stage ( age 36- 50 years)- In this stage of life, a person can’t go for savings because of many expenses but they can plan for their retirement via many schemes like EPF, EPS, and Mutual Funds.
Benefits of retirement planning
It contains both emotional and financial advantages. Now, I am here to discuss certain points why it is a must to go for retirement planning.
1. For maintaining a lifestyle
If you want to make your post-retirement lifestyle like your present life, you should definitely do retirement planning. In planning, you should mainly consider some post income resources, which will give you money for maintaining your life standard.
2. To be ready in an emergency condition
Retirement planning helps you to overcome in case something unexpected may happen in life. You can build an emergency fund with the right retirement planning.
3. To manage medical expenses
With the increment in age, you need some medical facilities and medicine. With retirement planning, you can appropriately manage all these expenses.
4. For your retirement goals
You may have some post-retirement goals like learning something, travel anywhere, gifting someone, etc. In these cases obviously, retirement planning will be more helpful.
5. To fight inflation
With the bouncing inflation rate, in the future, everyone will have to face many financial-related problems. If a person plans for retirement then he can invest in advance and can get sufficient returns in retired life which will help to fight inflation.
6. Don’t want to be a burden on their kids
Many parents can plan for retirement with the post-income resources if they are not comfortable being a burden on their children.
7. To support your family
if someone does retirement strategy in his earlier life then he will be able to support his family even after retirement.
8. Keep your nature ongoing
if you have a charitable nature then of course you will want to continue with this nature. It may be possible only if you plan your post-retirement income in your younger days.
9. To live comfortable and tension-free life
For enjoyable and tension-free retired life, a person should plan his need and expenses of retired life.
10. To get regular and guaranteed income
A guaranteed Income post retirement, like a Pensio gives a lot of boost and security in one’s old age. He can manage his assets in a well-prepared way. Better monitoring can serve you with higher returns as a retirement plan.
11. Tax benefits
It caps many tax benefits also. You can contribute to pension schemes for planning your retirement from your taxable income by which you can reduce your payable taxes. Some retirement plans like PPF, NPS, EPF, Mutual Funds, etc. offer either tax-free or partially taxable payout.
The emotional benefit of retirement planning
Retirement planning also gives the most important emotional security in your retired life. After completion of responsibilities, when a person wants tension-free life. It is even horrible to imagine that you will have to depend on others for little things.
Anyone can take a lesson from our Bollywood cinema. In the BAGHBAN movie actors, Amitabh Bachan and Hema Malini play the parent role who spend their all time and money for their kids and they didn’t plan anything for their retired life. In the end, they had to depend on their children for everything. But their kids were so busy in their life, they ignored them and also misbehaved. In old age, this couple had to struggle with so many things because they didn’t plan their retirement.
if a person doesn’t want to struggle in his retired phase of life then without any doubt he should go for planning his or her retirement.
Conclusion
Retirement Strategy will be helpful to live financially independently. if a person doesn’t want to make a fool like Baghban and Avatar movie actors then he should go with retirement planning. One should do retirement planning as soon as possible, which turns out to be more beneficial. It helps with the three main aspects of life, which are the following-
- Anyone can manage his time with preplanned activities and events.
- Proper Planning makes the person financially independent.
- The person can spend his retired life with peace of mind.
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