What is Retirement Planning?
Retirement planning is nothing but a process of managing and planning your short-term as well as long-term finances so that you can achieve your financial goals, both, during your working years as well as for your retired life. The objective is to plan a comprehensive retirement roadmap by analysing your financial aims by considering your current financial position as well as your expected future cash flow.
Why is Retirement Planning Required?
Without a cautious retirement strategy, there is a huge risk of outliving your savings which means after a certain time you won’t be able to maintain the desired lifestyle in your retirement years.
A proper retirement planning helps you to regulate how much to save today; how much to invest so as to get the desired returns in future. Also, it helps you to protect your assets and aids as a support in case of unfortunate events.
What are the benefits of Retirement Planning?
It helps you to –
– maintain your desired lifestyle during old age.
– plan for key life stage events leading up to retirement.
– provide financial security to you and your dependents by enabling you to make prudent investments during your working years.
– make the best use of your hard-earned money post retirement.
– cover for any contingencies arising from uncertain events.
