What’s the Right Time To Start Retirement Planning in India?
What is Retirement Planning?
Retirement planning is the process where you save and invest for your future. You will use that money once you retire.
Why Should you Plan your Retirement Early?
With time, inflation increases the daily cost of living, and your active income will stop once you retire.
What’s the Right Age to Start Investing for Retirement?
Starting in your early 20s is the best time to start, as your investments compound.
Where Should you Invest for your Retirement?
You should consider products like mutual funds, PPF, NPS, bonds, etc. Do consult a financial advisor to help you out based on your risk appetite and requirements.
How much Should be the Right Amount for Retirement Planning?
There is no one-size-fits-all approach. Whatever your current yearly expenses are, multiply them by 30.
Calculation forDeciding yourRetirement Corpus
For example, if you spend ₹1,00,000 monthly, your yearly expense stands at ₹12,00,000. So your retirement corpus can be ₹3,60,00,000.
Does the calculation give an exact number?
No, the above calculation does not account for inflation, so always consider a higher number.