Retirement Planning And Options in India
- A) Less working years than non working years
- B) Increasing Life Style
- C) Increasing Living Cost
- D) Nuclear family culture
- E) Advanced Medical Facilities
- F) Increasing Medical Cost
- G) Absence of Social Security System
1. Accumulation Phase of Retirement:
To plan for your retirement you save some amount every month to build your retirement corpus. This corpus makes you confident to retire if it is sufficient enough to take care of your necessities.
2. Distribution Phase of Retirement:
In these years to live your passion, you use this retirement corpus to generate regular cash flow. You get regular monthly or annual expenses in advance for your needs from investment of these assets.
Expenses after Retirement
- A) Living cost
- B) Domestic Help
- C) House and Appliance maintenance
- D) Monthly medical cost
- E) Medical Emergencies
- F) Gifts to grand kids
- G) Vacations
- H) Maintaining Life Style
Some important factors while planning retirement
- A) Don’t plan retirement in isolation.
- B) Start planning your retirement as early as you realize.
- C) Get a comprehensive Retirement Plan with your existing assets and the new contribution to be made.
- D) Keep it simple
- E) Don’t stop or postpone your investments.
- F) After retirement look for returns after Tax and Inflation adjustment