Saving for retirement is often the last item on your budget and the first to be cut in favor of other priorities. (Representational Image: Shutterstock)
Without a proper retirement plan, people may not be able to afford the same lifestyle that they used to have during their working years.
important in retirement planning India To ensure financial security and a comfortable lifestyle during old age. It is essential to start planning early in order to accumulate enough money to sustain yourself during retirement.
With advances in health care and medical technology, people are living longer. Hence, they need to plan their retirement to ensure that they have enough money to maintain their lifestyle and take care of their healthcare needs during the retirement years.
The cost of living is also increasing rapidly. Therefore, experts feel that it is important to have a retirement plan that takes into account the impact of inflation on the cost of living.
Without a proper retirement plan, people may not be able to afford the same lifestyle that they used to have during their working years.
Ajay Lakhotia, Founder and CEO, Stockgro, said that it is very important to understand the importance of balancing short-term goals with long-term planning.
Why is it important to start investing early in retirement planning?
Starting investments early is important in retirement planning as it allows you to take advantage of the power of compounding.
Compounding is the ability of an investment to earn not only on the initial amount invested, but also on accumulated interest or earnings over time. ,Read more about compounding here,
The sooner you start investing, the more time it will take for your money to grow through compounding. By investing early, you give your money more time to work for you, and your investments have more time to recover from any market downturns.
Read also: Retirement Planning: 10 Tips For Gen Z To Secure Your Future
The sooner you start investing, the more time you have to save and grow your retirement savings, and the more money you’ll have available when you retire. It is always recommended to start investing as early as possible to achieve a comfortable retirement.
Here are five steps suggested by Lakhotia to help you ensure a secure and satisfying retirement;
1. Find your destination: Find out how much money you will need to live the life you want after retirement.
2. The worm will catch quickly Make it a habit to withdraw a part of your income every month.
3. Diversify or Die: Don’t put all your eggs in one basket. Spread your investments across multiple asset classes to minimize risk and maximize growth.
4. Stay away from the cookie jar: Retirement accounts are for your golden years, not your midnight snacks. Avoid withdrawing money and let it grow.
5. Expert help is just a phone call away: If you are feeling overwhelmed, seek guidance from a financial advisor. They’ll help you navigate the confusing world of retirement planning and make sure you’re on the right track.
Remember, retirement planning is not a one-time event, but a life-long journey.
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