Retirement Age - Know How To Prepare For It
Planning for retirement is the most crucial step for every individual. An early retirement ensures that all the life goals of your loved ones are successfully met. However, relaxed retirement period is possible with the help of the right retirement plans. Opting for retirement plans allows the smooth flow of income for the betterment of you and your family.
Retirement planning before reaching the retirement age marks the beginning of a stress-free life. Additionally, few investors prefer the accomplishment of their life goals after they have taken retirement. Hence, it is advisable to follow the steps given below before reaching the retirement age: Take a look:
Steps to follow when you’re entering the retirement age:
1. Consider your age
Ideally, the retirement age in India is between 55-60 years. However, the concept of early retirement is globally followed. If you decide to opt for early retirement, consider your age and the needs of your family, simultaneously.
2. Assess the ROI
Planning for early retirement helps you to save more for a peaceful life in the future. When you’re young, the risk appetite is typically more. Strong risk appetite will ensure more funds to realize your life goals. Additionally, a massive retirement corpus will manage your daily expenses and medical emergencies.
3. Evaluate your expenses
As you grow older, your health expenses increase significantly. Moreover, the hike in cost of hospital treatments are also to be blamed for excessive costs. Therefore, invest in a disciplined manner to live a relaxed retired life.
An ideal retirement plan offers investors with financial as well as personal advantages. Take a look at these benefits mentioned below provided by some of the retirement plans:
Benefits of early retirement:
1. Tax benefits
When you invest in retirement plans, it allows tax benefits on the funds invested as well as the returns on investment. Under Section 80C, the premiums qualify for tax deductions. As you reach the vesting age, the retirement amount received by the customers is also tax-free.
2. Power of compounding
Early retirement planning ensures that the customers utilize the benefits of the power of compounding to the fullest. The power of compounding helps the investors to enhance their returns on earnings. One of the ways to calculate the power of compounding is by making use of a retirement fund calculator.
3. Stress-free life
Retirement plans allows the buyer to live a long and prosperous retired life. A good retirement plan financially supports his entire family with an adequate amount of resources. Utilize a retirement fund calculator and find out the amount of corpus you and your family will need to live a comfortable life post your retirement.
4. The accomplishment of life goals
Retirement is no longer only about living a comfortable life by sitting at home. Most people pursue their interests after retirement by indulging in different sports or travelling abroad. An investment in a retirement plan early would help you get your life goals done.
To sum up, planned investments can help you live worry free after retirement. Purchase a retirement plan that provides you with a host of options to fulfil all your requirements.
