7 effective ways of Retirement Planning
Being an Indian and a senior citizen has its own pros and cons. If you have been a government servant, at least some pension is guaranteed, however, if you have not been a government employee, then there is great need for you to save money and plan your after-retirement life. Of course, the planning needs to start at least from the age of 50 and not after you are a senior citizen!
Here are 7 effective ways you can plan for a secure retired life:
- Goals: Have fixed goals for the next 1 year, 3 years, 5 years and 10 years and save enough money so that you may have collected enough wealth by the time you are 60. You could save in cash with your bank as FDs or invest in mutual funds, bonds and so on.
- Planning & Prioritization: Analyze and Understand your retirement needs carefully so that you do not overdo saving. Especially for parents whose children have jobs and would be settled in their lives, they would need to pay attention to certain needs and not worry much about other things. For instance, a retired person needs a home to settle down but may not need a Scooter or Car to drive by. This again depends on one’s priorities.
- Contribute to Retirement Savings Plan introduced by your employer: This really works well for people who do not have a fixed pension. By contributing to this scheme, by the time one is retiring, they would have saved enough.
- Consider SIPs and other investment options: Systematic investing in mutual funds could be a great way of saving money and also helps in accumulating huge profits at growth rates of 12%-15% per annum. So try these out tirelessly and set your goals every year accordingly.
- Invest in real estate: This could be a great option for those who can wait patiently for rates of land & property to increase and finally earn profits after several years of investing. Even government employees who are earning a pension often do this to save their future.
- Get out of Loan: Yes, if you have taken any loans from any bank or anybody at a personal level, make sure you have cleared off all your debts and your credit scores are clear before you retire. After all, a man free of debts can be much peaceful than a man who is burdened with debts.
- Have an emergency reserve: Besides saving in different places, always have an emergency reserve of a few lakhs of Rupees which you can use only in case of any health emergency etc.