Retirement planning means preparing for your future today so that you can fulfill all your goals and dreams independently. This includes setting your retirement goal, estimating how much money you will need, and investing to increase your retirement savings.
Another more quantitative formula believes that you should save 25% of your total salary every year starting in your 20s. The figure of 25% salary may seem scary but it is necessary to do this to make your future life happy.
What is a retirement plan:
A retirement plan can start anytime during your working years but the sooner the better. A retirement plan can be seen as a roadmap to live a comfortable life after work. It includes saving enough money for the life you want to enjoy in the future. Your retirement plan can change with time.
Reasons for planning retirement:
1. Financial independence:
Your retirement plan provides regular income to you and your family. You will not have to depend on any kind of loan or loan.
2. Keep your life a star:
With monthly salary, you can save money for your family, pay for your basic and luxury needs. And save money for the coming time. Retirement planning ensures that you can live your life well.
3. Medical expenses:
Illness comes without any warning and to ensure that you do not spend your entire savings, you have to plan your retirement accordingly.
Always set aside a certain amount of your retirement fund as medical emergency expenses, so that your savings are not affected by illnesses and treatments.
Benefits of retirement planning:
1. Stress free life:
Having a retirement plan allows you to live a peaceful life after retirement. There is no tension of future expenses, a pre-planned retirement policy will help you earn a guaranteed regular income.
2. Financial protection:
Life insurance cover in retirement plan ensures that your family is taken care of in case of your untimely death and if you die during the policy period, insurance payment is made to your family.
3. Regular income:
You and your family will get help in running daily life.
Some retirement plans are as follows:
- LIC
- HDFC life
- SBI life
- ICICI PRO
- KOTAK PRE
- TATA AIA life
Best retirement plans in August 2024
- Defined contribution plans
- IRA plans
- Solo 401(k) plan
- Traditional pensions
- Guaranteed income annuities (GIAs)
- The Federal Thrift Savings Plan
- Cash-balance plans
- Cash-value life insurance plan
- Nonqualified deferred compensation plans (NQDC)