Retirement Think first:

Everyone thinks of a relaxed life post retirement. Some even think of a part time job, or social work, or scrolling round the park near the house. It’s all upto you how you want to enjoy your post retirement life. It can be the best stage of your life, if planned well in advance. Here are some points to help you plan your retirement.
Plan a fund: Arrange for a defined sum of money to be invested each month for your retirement only. Be disciplined in your approach, start early and increase the investible amount on every rise in your salary. Remember, your PF contribution won’t be enough to suffice you post retirement.

Discipline: Be committed; don’t ever stop your investment towards retirement to achieve a different goal. Arrange for emergency expenses upfront, so that you don’t have to redeem your retirement fund in case of an emergency. No matter what your expenses, there should be a regular outflow towards your retirement goal till you retire.

Adjustment: The effect of inflation diminishes the value of rupee. No one is able to judge how expensive life would be post our retirement. Hence, account for inflation because it will affect you as long as live. Even, your standard of living might change with an increase in salary and other factors. Try to ascertain the retirement corpus with a financial planner that you need to acquire to lead a happy retirement life. Also account for expenses that are currently borne by your company or medical expenses that would increase with your increasing age.

Investible options: It is not only important to start early but you also need to invest in a proper mix of equity and debt instruments to generate great returns on retirement. Depending on your age, dependants and risk profile, invest in a mix of investment products available in the market. On retirement if you are opting to purchase a pension plan, remember only 33% that you will receive as lump sum would be tax free and remaining annuity amount will be taxable. (Check out pension plans article) for details.

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