Formulate retirement strategies smartly from your 30s
The retirement age till the 90s was 58 years which was raised to 60 years in 1998. Now the discussion is going on making to 62 years. Have you ever given it a thought that why earlier the retirement age was low? Earlier due to various factors, the life expectancy of the people in India was quite low. But, now with the advancement in technology and the rising standard of living has in turn, raised the life expectancy of the people as well. However, the question of how to follow a correct retirement plan for retirement still remains the same.
There is always a point in every working person’s life when he/she gets alleviated from all the financial as well as social responsibilities along with a diminished ability to work further. That day they can retire and lead a peaceful life. But, if you are not financially sound then it becomes difficult for you to take the decision firmly. So, one should start planning for the moment which is not the end but just another beginning. Here are some tips which would make your retirement a happy one.
Tip 1 : Balancing PF and Retirement Schemes
There are numerous companies which deduct the employees PF contribution for their salary itself. To this amount the employer adds a share and then this money is deposited in the PF account which is held in the name of an employee. This method is the most traditional way of planning for your retirement. But, mutual funds also have launched variegated schemes which enables the clients to accumulate funds for their golden period. There are a plenty of aggressive schemes which are capable of multiplying the clients money at an exhilarating rate. Thus, along with the traditional techniques, clients must equally give importance to the mutual fund schemes as well.
Tip 2 : Make use of the incentives
It is often seen that the clients pre-plan their expenses prior to the incentives or salary hike they would be eligible according to the increment cycle. The employees forget that before the increment they were able to meet their expenses. So, a smart investor is the one who believes that he has not got any increment and invests the amount towards his retirement planning, then it will benefit him more. The clients need to invest that money in the correct schemes so that they get to harness the power of that extra income which they would have otherwise spent in some way or the other.
Tip 3 : Reduce your debts
The debt culture is increasing day by day. People tend to take loan for every single need of their life say, home loan, car loan, education loan and so on. This is a vicious trap which makes the client get involved in the installment cycle and have to work for more number of years in order to payback all the liabilities. It is a very tiring schedule to go through. Thus, the clients should take loans for only those things that are inevitable, or they should get it paid off by the time you advance towards your retirement age.
Tip 4 : Follow an investing schedule
Retirement planning cannot be just done in a single day itself. If the clients want to enjoy their relaxing period with the same financial stability as they are living currently, then they have to be consistent in their investing schedule. As a mango tree cannot bear fruits in a single day, one can’t expect the clients to get returns from their invests with a short-period of time. The clients must have a long-term perspective beginning at an early stage of their career. It will not only give financial strength but will also give them the confidence to live with the same self-respect as they have maintained throughout their lives.
Thus, planning and executing for the retirement at an early age will make the clients self-dependent and will allow them to have the liberty of living their life on their terms. So, be wise to invest early as you have the opportunity to progress and the capability to work in your 30s, which goes on declining as we advance towards our old age. So, it is better to plan at the right time to have copious returns at the later stage.
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