Retirement ahead Are you ready?

What comes to your mind when you think of the word ‘Retirement’? For me, Retirement is like a very long vacation where you to tend spend more than usual. But the only difference is that there is no income source, only expenses continue to rise.

We have spent our whole lives working, spending our earnings and hopefully save a little more. When we retire, everything we have experienced in managing our finances is turned upside down. We no longer earn that much money. We need to find out how to do it and expand what we already have.

Retirement is like a very long vacation where you to tend spend more than usual. But the only difference is that there is no income source, only expenses continue to rise.

Is Retirement Planning really necessary?

For our previous generation, ‘Pension’ was a important source of income in retirement. And that was sufficient to meet the major chunk of lifestyle expenses. But what about today? We don’t have anything except Employee Provident fund for our rescue. And that too isn’t enough.

Planning for retirement starts with thinking about your retirement expenses & goals and what is the time horizon you have to meet them. Next we need to look at the types of retirement saving instruments that can help you raise money to support your future needs. As you save that money, needless to say, you need to invest it in order to grow. Otherwise, Inflation will eat into your retirement corpus.

One of the important part is of taxes: We need to consider the impact of taxes in advance. If withdrawals from your retirement corpus are planned in a systematic way, we can certainly reduce the burden of taxes in the retirement phase. 

What to do now?

Retirement planning should include determining time horizon, estimating costs, calculating the required post-tax income, risk tolerance assessments, and periodic rebalancing of your portfolio.

Start planning as soon as you can to harness the power of compounding. Young investors can take a big risk by investing their money in the capital markets, while retirees who are close to retirement need to save a lot while staying safe.

Retirement plans change over the years, which means the portfolio needs to be re-evaluated and plan needs to be updated periodically.

The importance of Retirement planning has now increased, more than ever. The world has now moved from fixed-benefit plans to fixed-contribution plans. This implies that the employers will no longer care for your retirement. You’ll have to plan for yourself. 

Seeking a professional advice for this course will make your plan stronger and help you reach your goal comfortably. Get in touch with us for your peaceful retirement.

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