Retirement Planning: Today, we are going to talk about a topic which is important for everyone, whether you are in college, working or close to retirement – retirement planning. As long as we are working, everything seems fine. But the question is how will we manage our expenses when we stop working? Retirement planning means saving a little money now and investing it in such a place that you don’t have to worry about money in the future.
How to prepare for retirement?
1. Think about the kind of life you want after retirement
Do you want to manage only household expenses, or do you also have plans to travel?
Whatever your dream is, you will need money accordingly.
2. How much money you need
The expenses you make every month today will remain the same in the future as well, but a little more due to inflation.
You have to try to earn at least 70% to 80% of your current income every month even after retirement.
Where to invest for retirement?
1. NPS (National Pension Scheme)
This is a government scheme in which you invest a little money and get a good amount of money and pension after retirement. It also saves taxes.
2. Pension Plans
Insurance companies offer such plans in which you can invest money and later get pension every month.
3. Mutual Funds
If you can take a little risk, then investing money in mutual funds is good.
As retirement comes closer, you should choose safe funds like debt funds or hybrid funds.