WHY DO YOU NEED RETIREMENT PLANNING?
We are so very much engrossed in our present activities that we often forget to plan for our retirement planning. We tend to overlook the need of planning for our golden days.
Retirement planning is a process wherein we plan our lifestyle and finances for post-retirement.
We never begin a journey without knowing the destination, do we? Similarly, investing without a strategy or a plan has little meaning. Before starting with investments for retirement, it’s important to determine the cost of your current cost of living, your risk profile, important junctions of your life post-retirement, time horizon, future cost of your use to lifestyle etc.
With a strategic financial and investment plan, you will be empowered to manage various expenses such as the cost of living, emergencies, etc. Moreover, you will gain control on your income and expenses, resultantly; it will help you to accomplish your financial goals.
To summarize, a retirement financial planning will help you to identify your life goals (the ENDS), as well as, the path (the MEANS) to accomplish the financial goals.
Here’s why you need to plan for your retirement –
#1 To cover the cost of use to lifestyle post retirement
Be it small or big, we all have to bear the necessary cost of use to lifestyle even post-retirement. In such a scenario absence of our monthly income could become a terror.
Retirement planning is creating a shield to protect ourselves from this terror. By planning and creating a considerable retirement corpus, you can make sure that your family’s standard of living is comfortable post-retirement.
#2 To cover the cost of medical expenses
With age, the number of health complications and emergencies also increase. Having a mediclaim or health insurance plans may help you tackle all your medical expenses.
#3 To fight ever increasing inflation
Inflation has the power to kill the value of your hard earned money. It eats into our investments and reduces the purchasing power of your money.
#4 To deal with emergencies
Needless to mention, life is quite unpredictable. It can sometimes throw us in unfavourable circumstances, which we may not be prepared for. a thoughtful retirement planning helps us to stay prepared for such adverse situations that have the power to create a financial as well as emotional turmoil in your life.
Hence, it is very important for us to have a well-thought retirement plan that will help you to determine where you stand today, and the steps you need to implement to achieve your financial goals.