Planning your retirement savings is an important task, as you have to consider the financial flexibilities once you stop working for good. Shockingly, many Indians do not consider retirement savings as a serious proposition and it’s only later that they realize how valuable it really is. According to a survey conducted by global professional services company ‘Towers Watson’, more than 78% of Indian employees think that will need to save more for their retirement.
The number is astounding and it’s high time that young employees start thinking about their retirement savings. It may seem as a distant worry now, but the earlier you start, the more you save for your retirement. Following are pointers that are vital for retirement planning, try and adhere to these –
1.Plan your retirement at an early age
Firstly, you need to figure out at what age you want to retire and then plan your retirement. For this to happen, plan it at an early age. This will give you a projected time and the money you want to save.
2.Project your monthly expenses
Tracking your monthly expenses is mandatory; it provides you with the knowledge of unreasonable expenditure and the amount of money you can save. Prepare a sheet that will assist you in tracking all of your monthly expenses.
3.Special risk planning
Always take into consideration emergencies and risk factors that may occur post your retirement. The money saved up for this should not be any of your investments or policies, but a specific amount saved up for emergencies.
4.Find smart ways to accelerate your savings
Accelerating your savings means more money post retirement. There are several ways through which one can increase his savings, like reallocating a part of your savings into an annuity. By doing this, you will be restricted to spend any of the money while saving but will be able to utilize the money after retirement with the additional interests earned.
5.Download Retirement Calculators
If you’re not able to calculate your retirement savings and find it confusing, download online retirement calculators. They are readily available and will guide you through even the simplest calculation that you may tend to miss.
Apart from the above pointers, a good pension plan for retirement planning also works wonders. Also, remember that you don’t need to be really old or pass a certain age limit set by the government to retire. You can retire younger if your savings are ample, and you don’t feel the need to work anymore, and can easily spend the rest of your life being financially secure.
About HDFC Life
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions.