Retirement Planning is a financial allocation of your investments and savings to meet your future needs and obligations when an Individual is no longer in Job or Business as the case may be. It provides financial independence and you don’t need to depend on anybody for your living. Retirement Planning merely does not mean availing any of the retirement plans available in the market rather it requires more strategic thinking and planning. Many factors are required to be considered before deciding on Retirement Plan depending on your Financial requirement and type of lifestyle.
It is very necessary to plan early as it lends better balance to your funds and one does not need to make steep investments for the future.
The following factors should be taken into account while planning your post Retirement Financial needs:-
Cost of Inflation: This is one of the most important aspects of the planning. Costs will get inflating and thus we would require to shell out alot more for same product or same quantity in the future. Hence we need to keep inflation in mind while planning our future as products and services are bound to be dearer in future.
Medical Coverage: With advancement in age we require better medical coverage. Medical costs these days are very high and will escalate further. Moreover, with changes in lifestyle many more complicated illness have surfaced which require huge funds so planning should be done keeping it in mind. You should have saved sufficiently to pay Health Insurance premiums for self and atleast your spouse.
Cost of Living: Our lifestyle also plays a major role in determining the funds required in the future in order to enjoy the same benefits even after retirement. Hence it is important to determine the potential expenses which need to be taken care off in the future while planning.
Lumpsum Fund Needs: Even after retirement their might be lumpsum financial requirement for various purposes like renovation of the house or even for purchasing a new vehicle. So adequate arrangements should be in place to take care of such needs and you are able to live your life comfortably.
Read About National Pension Scheme in the Link Below:-
National Pension Scheme/System (NPS): Retirement Benefit Plan