Retirement planning for Indians often means getting a pension and relying on children in old age. However, this thinking is not correct. Experts saying Children are not your retirement fund. Everyone should understand this and take the necessary steps accordingly, as age increases, more and more investment should be made. The biggest challenge after retirement is to deal with inflation as earnings are fixed.
Take care the following tips for saving funds for retirement:
- Large Fund is Necessary for Retirement
Many people believe that if they give children everything, they can to climb the ladder of success. Then their post-retirement life will be easier. But this is not always the case. Expert says that even children take good care of you, if you deposit a huge fund for retirement.”
- Invest Now for a Happy Life after Retirement
Retirement is an important stage in everyone’s life to earn a happy life after retirement. You have to manage your hard-earned money with as much hard work. It is important to start the fund preparation process early. Sometimes delaying affects life after retirement.
- Biggest Challenge is Inflation
The biggest challenge for retirees is to knock inflation from time to time. They leave the job and their source of income is their investment. This income is stable, while the prices of things keep rising. Expert says Inflation can make you poor by ending your fund. You can see rich people living difficult lives after retirement. Expert advice is by understanding time and compounding, investors can protect themselves from inflation.
- Indians are Living Long Life
Indians are living longer lives than before. Individual work for an average of thirty years and retires for more than thirty years. Retirement planning has become difficult due to increasing life expectancy and expensive medicines. You have thirty years to earn and invest. In this, you have to raise enough money to support you in your thirty years of retirement. Just saving will not do. You have to invest with cleverness; otherwise, you will have to compromise with the ways of living.
- Invest more on Aging
At 20-30 years you should invest 15-20% of income, 25-30% in 30-40 years and 35-40% in 40-50 years. You should invest in different phases of life in a similar way. If you start investing late, your risk profile will not be as aggressive as it is at a young age. In such a situation, you will lose the chance of getting higher returns, so that you can deposit a big amount for the fund.
- Do not Risk too much If you Start Investing Late
If someone has less time to raise funds, they should be more careful. They should not take too much risk.
- Investment Should Start in Time
Experts Say, ‘You should always adopt a 100 minus edge formula to invest in equity or debt. When you have less time left to score a financial goal, do not risk too much.