The dreams and ambitions of today’s youth are increasing rapidly. They want to live a great life by achieving their financial goals before the age of 60. For this, they are not even shying away from hard work. Recently Grand Thornton surveyed the Indian Pension Scenario, according to which 43 percent of Indians, most of whom are under 25 years of age, believe that they should retire between the ages of 45 and 55.
Apart from this, more than 55 percent of people believe that after retirement there should be a monthly pension of at least ₹ 1 lakh. This is not impossible, but it is a bit difficult. If you also want a great retirement, then for this you will have to make excellent financial planning. In this, you will also have to think about such future expenses, which you have no idea about right now. We have brought some special tips for you for a better retirement. If you follow these, then you will never have any financial problems after retirement.
Assess your age and expenses correctly
First of all, decide at what age you want to retire, like 50 or 55 years. After this, consider your lifestyle after retirement. Your monthly expenses can be up to ₹ 50,000 or ₹ 1,00,000. Make a separate budget for medical and incidental expenses. This is the first and most important step to set a clear financial goal.
Start saving as soon as possible
The bigger the retirement fund, the sooner you will be able to become financially independent. For this, it is extremely important to start saving as soon as possible. Save at least 20-30% of your monthly income regularly. Avoid unnecessary expenses and invest the savings in better investments. The magic of compounding interest works when you invest for a long time, so time is your biggest ally.
Adopt a smart investment strategy
Saving alone will not work, right investment is equally important. Invest according to your risk appetite and goals. Do SIP (Systematic Investment Plan) in Mutual Funds. This will help you invest in a disciplined manner while protecting you from market volatility. Buy shares of fundamentally strong companies. Invest in pension plans that ensure regular income after retirement. Also, pay attention to safe and tax-free options like PPF (Public Provident Fund) and EPF (Employees Provident Fund).
Don’t forget to take health insurance
The biggest expense after retirement can be related to medical. Health issues can increase with age, and the cost of treatment can skyrocket. Make sure to take a good health insurance plan, which also includes coverage for serious diseases. This will keep your savings safe in a medical emergency and you will not have to spend your hard-earned money on treatment. This is a strong pillar of your financial security.
Take full care of inflation
Do not ignore the inflation rate at all. If today the household expenses are covered in ₹ 50,000, then after 20 years the same expense can reach ₹ 1.5 lakh due to inflation. In such a situation, invest in options like Mutual Funds, Real Estate, and Gold, which can beat inflation. These investments will give you real returns, which will neutralize the effects of inflation and maintain your purchasing power.