Sep 13, 2017 2 min read

Why is it often heard that Planning for Retirement is Important? Know Here

If you do not plan your retirement early, the burden will multiply each day.
Life is not going to end on the day you retire. We all know this fact, but most of us do not realise. Most people do not expect their retirement, and when it approaches, they left with nothing. Researchers say that 77% of the Indians are not planning for their retirement and majority of them don’t even expect their retirement. At last, they end up with dependency on their children or retiring poor.

You must have dreamt of owning a house, a car, and live your future life lavishly. But, have you ever thought that how you will achieve all those dreams! We need to plan each step toward the achievement of a goal in our life. Even you might be planning all your daily activities to perform them efficiently. So, why you are not taking any serious step to make your retirement happy. It is crucial to plan for your retirement because it is hard to meet requirements when the source of income is closed. Yes, once you enter the retirement age, you would have left with your job, and some of the sources of revenue which remains with you are fixed deposits, PFs, etc., which are not regular. So, how you will manage your monthly expenses during your retirement age in the increased economy rate. Furthermore, the healthcare and medical science have achieved an incredible growth since the last decade. The improved services indicate that our generation will live longer than the previous ones. But, can you assure that you will be earning a salary or income for life long? We know the answer, and that’s why it is said that retirement planning is necessary.

Let's know how you can plan an effective retirement:

First, consider how much you will need at your retired age. One rule of thumb says that you will need around 70% of your annual income to live comfortably in the future. It only works if you have paid off your mortgages (if any) and are in excellent health when you retire. Remember, your health care expenses are also one of the major concerns which could cost you high in the future.

Second, Plan about how you will meet the expenses during your retirement. There are three prominent sources of income during retirement, viz., pensions and annuities, Social Security, and your savings. You need to plan that from which source of revenue, what you are going to achieve. And if you feel that you do not have sufficient sources of income which could meet your future financial goals, then invest in a retirement goal planning fund will be a good call.

Therefore, to live well in the retirement days and richly enjoy them, you no longer can rely solely on the pensions by the companies or any other social securities. Instead, the most effective step taken by you of investing in any retirement fund will help you. Furthermore, to choose from the best retirement plans offered by the top AMCs in India, you can check on our investment platform. And to start planning your retirement with the most suitable plan, get associated with us right away at MySIPonline.