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13Retirement planning benefits one should be aware ofJul-29-2020

Retirement planning benefits one should be aware of

Blog by – Mr. Dhruv Ajmera

Let’s face it, nobody is getting any younger. If there’s anything that COVID-19 has taught us, it is the importance of having a safety net. Knowing that we are all moving towards old age where we want to be self-sustaining. Effective retirement planning with a pension is what the safety net should be for anybody over the age of 30.


An old age without a retirement pension means having to work with lesser energy. Nobody wants the hustle to continue, right? Plan now for a safe future. This article will guide you on how retirement planning benefits in more than one way.


Advantages of retirement planning

With the change in the social, political, and professional scenarios with COVID-19 and even in the pre-coronavirus world, having a future security plan has become of utmost importance. When nothing but uncertainty comes our way, it becomes essential to plan everything we can. Retirement planning is one of those things. We all know that everything ranging from investing in the stock market, finding a mutual fund advisor to hunting for the best and the most suitable pension plan, has to be done sometime. Better start sooner than later.


Starting it early means that you can be well prepared to absorb any shocks and surprises that the future may entail. Now, while you may do your research and have a vision of how to go about this, we always recommend getting on-board with a financial advisor, depending upon your mode of investment and savings. If it’s the stock market and mutual funds, for example, then look for the best stock market advisory and top mutual fund advisors in your area. With them on-board, you will get a professional perspective as well the market know-how that would otherwise escape you.

Advisors and advisories help people put together a retirement pension plan that fits your budget and needs, as well as your long term plan. If a stress-free retirement has you convinced but you want more pointers on the list, here are a few more:


  1. Compound interest
    Like we said, the sooner you start, the better it is! With an earlier plan for savings and investment, you can benefit more from the accumulating compound interest. The total interest is calculated on the first principal along with the accumulating interest over the previous periods. For example, if your initial investment is ?5,000 with about 7% interest rate, and if you start investing at the age of 25, by the time you retire, let’s say around 62, the savings could reach about a million rupees by just compound interest!

  2. Tax Benefits
    More often than not, opting for retirement plans gives many tax benefits that people otherwise are unaware of. You can and should seek help and clarity from your advisor to know under which sections you will get these tax benefits and how you should go about planning for the same. Better planning for tax is a big part of the broader bracket of retirement planning. Thus, you must discuss this with your advisor at length.

  3. Retire at will
    With good retirement planning comes the biggest benefit of it all: the choice of retiring when you want to! Which means, if officially you were to retire at 65, with just a broader perspective and better planning, you can retire at 50, or even earlier if you want! Working with a mutual funds advisor or an advisory will help you understand when you can reach the goals you intend to. No matter when you start the journey of your savings & investment, the advisors will ensure to customize a plan as per your needs.

  4. Sit back & relax
    We all work weekend to weekend to ensure that we can live a peaceful life when we retire, without worrying a single day about our bank accounts and savings. The world is your oyster once you have retired. All the benefits that exist for retirement planning, this is the underlying statement for all!

    The other part of it is that once we get older, our bodies have more requirements that we have to look after. For those rainy days, an emergency fund, other than the pensionable income too is required.


With these pointers in mind, reach out to an advisory in your vicinity and start planning for your future right away!


Also Read: Ensuring Financial Well Being After Retirement

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