What is the ideal age to ponder retirement planning?
One of the most significant aspects of financial planning is retirement planning. Continue reading to find out when is the best time to prepare for your retirement.
Retirement has evolved from a more objective to a more subjective matter throughout time. In the past, that is, at the period of your father and grandfather, retiring was pretty objective. They usually get a career in their 20s after graduation and work till they are in their 60s.
Although voluntary retirement was the idea, it was also rather objective. However, individuals are increasingly gravitating toward the notion of Financial Independence and Early Retirement (FIRE). Today, many people are attempting to retire early in their forties. As a result, our retirement planning should change to account for this subjectivity.
Furthermore, even when it comes to retirement planning, many individuals think of it as post-retirement planning. This, however, is a common misperception. Retirement planning is a blueprint that will assist you in navigating your retirement period comfortably and without experiencing a cash problem. As a result, it must be completed before you retire.
The age at which you begin planning for retirement is the age at which you begin working. To put it another way, most people retire around the age of 60, and your 30s are an excellent time to start saving for retirement. You may not be able to give much at first, but there should be a mandated contribution towards retirement.
You may begin investing for retirement with as little as Rs 500 each month. To save Rs 500 per month and accomplish Rs one crore in 30 years, you must increase your Systematic Investment Plan (SIP) by 18 per cent per year.
Having said that, strive to make retirement a priority. This is because you will not be earning anything during this time, and even if you do earn something in the form of a pension or rental yield, your expenses will be more than your earnings. As a result, having a suitable retirement plan in place is essential.