‘Retire in peace’ is what everyone dreams of. This doesn’t mean to just lie down lazily in a sofa and do nothing. This actually means to put in all your effort, plan, fix a financial goal to build a retirement corpus and then execute the same. In this way, you could definitely enjoy your retirement and actually stand by the words ‘Retire in peace’.
According to experts, every individual’s retirement planning should begin from the day they start going for a job and earn. Almost everyone knows this, but not all follow this advice. Now let’s see some of the important rules that will help you to increase your retirement corpus.
- As with any kind of savings, you should start saving for your retirement as early as you can and as mentioned above rightly from the day you start earning.
- You should keep aside at least 10-12% of your income to build your retirement corpus.
- You should increase your savings as and when your income grows.
- Invest or save more when you are younger. Try investing in mutual funds.
- Make sure to save half of the amount that you get as a bonus or increment for your retirement.
- You should be disciplined and never compromise on the amount that you have decided to save for retirement.
- Never dip into your retirement corpus before you actually retire unless absolutely necessary. Withdrawing money from your retirement corpus inhibits your money to gain from the power of compounding.
- Every Indian parent loves to save for their kids. However, you should borrow for your kid’s education and save for retirement for the greater good of your kid and your future.
- You should save as much as 20 times your current annual expenses for your retirement.
- Make sure to buy a health insurance cover for yourself and your spouse that will last till you are 70- 75 years old.
- Always review your financial plan and current financial holdings regularly.
Retirement need not be the time of your life that you try to live with money that you have. Retirement should be your ticket to do all the things that you missed out doing for yourself when you were young because of all the family commitments and responsibilities that you had. Retirement is the time to fly free and do all the things like going on a world tour with your spouse, taking up a new hobby, learning to play an instrument and so much more. To do all this without any tension of money, you much start early or start today to save for your retirement.
Get in touch with your investment manager/ agent to know how much you need to save exactly and how to build that required corpus without any trouble.