What are The Best Ways to Plan Retirement in India?

May-18-2021Blog by – Mr. Ashish AjmeraRead Time: 3 Min.Word Count: 672
613What are The Best Ways to Plan Retirement in India?

Retirement is the most crucial stage of every individual’s life. In most professions, your regular income stops once you reach a certain age. Pensions don’t usually help cover the monthly expenses and if you have been accumulating a certain amount of your salary in your savings bank account, inflation will reduce its value by the time you retire. Thus, one needs to have investments or savings that will give good returns by the time one retires.

People often are caught up in the various stresses of life and forget to look after their future. In such cases, if you don’t have money in hand to suffice during your retirement years, you may have to depend on others to cover your expenses. This isn’t a very pleasant stage to be in after spending your entire youth working hard at the office. 

Gladly, retirement planning is no more a stressful part of the entire process. Having an investment advisory at your service to guide you through helps a lot. Investment advisory services can provide you with their expertise and suggest a plan that suits your retirement goals.

Following are the top 5 ways in which you can ensure your retirement is the time you relax and enjoy life without worrying about the finances:

  1. Form a timeline of your life

Note down your current age and expected retirement age and begin bridging the gap between the two. The earlier you start, the more you can withstand risks. An individual starting at 30 with around 30 years to retirement can choose to invest in stocks. Stocks are a volatile investment but have shown to provide greater benefits in the long-term. By hiring a stock advisory company in Mumbai, you can build a strong investment portfolio with their guidance. For an individual starting at 55, with only a few years to retirement is advisable to invest in securities such as bonds. At this stage, the dramatic effect of inflation won’t be observed and investments won’t be as volatile as stocks. 

Your future plans must also align with your plan such as wanting to move to another country, covering the expenses of your children, etc. Everyone’s retirement goals are different, thus there is no golden rule while forming a timeline.

  1. Have a realistic approach to your post-retirement expenditures

Unforeseen emergencies or other unplanned expenses should always be taken into consideration. Large investments and expenses such as children’s education, buying a second home, etc must be considered. Keep some money aside for contingencies in the future.

  1. Diversify asset class

Traditional investment advisories may advise you to opt for investments with minimum risks. Such investments will keep your money safe but won’t make it grow. To avoid the effects of inflation, as we spoke about earlier, invest in equity to counter its effects and accelerate the growth of your assets.

  1. Don’t break your retirement plan halfway

Yes, it might be tempting to live life like there is no tomorrow and spend all your money on your current desires. However, you need to revisit why you began saving for your retirement. Take a look back at what you have planned for the future and how the goal has been purposefully set. Breaking your retirement corpus will cause a huge blow especially if you withdraw it within 5 years. If you wish to switch your job or bank, transfer your PF instead of withdrawing it.

  1. Partner with a trusted investment advisory

If you know how to make your money work for you, great! For the rest, a trusted and reliable investment advisory can help you in money management. All you need to do is let them know your retirement plan, goals and expectations. A good investment advisory will then help you build a portfolio over the years that will work towards achieving your pre-decided goals. In this manner, you can keep your investment on track and ensure minimized risks on the way.

For more information on online investment advisory services and the top advisors in Mumbai, get in touch with us today!

Also Read: Retirement planning benefits one should be aware of

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