Even if you start late, retirement planning should not be neglected. Only with a solid investment strategy can you safeguard the golden years of your life.
You are never too late to start saving for your retirement. While this is true, we also understand that it can be overwhelming if you are late for retirement planning. The older you get, the more constraints you will have.
The good news is that many people have much more time than they realise. Even if you start saving at age 35, you will still have more than 30 years to reach your goals and will still be able to reap the rewards of compounding your investments.
That will not be a cakewalk, but we assure you that with assistance from a qualified and experienced financial advisor, it will be more straightforward. They can guide you with concepts and recommendations for winning the race against time.
- Know Where You Are
The assets you already own that could serve as sources of income after retirement will determine how much you need to save. Understand how much money you might expect from sources such as:
Savings Accounts Bank Deposits Employees’ Pension Plan Rent or Sale of Real Estate Insurance Policies
- Estimate Your Needs
Knowing how much money you’ll need to retire comfortably will help you determine where to make your investments. If you start late, you may not want to invest in high-risk instruments like equities, even though they provide good returns. Instead, you should put your money in medium- to low-risk instruments such as debt funds and PPF. The idea is to save for your retirement years, keeping your lifestyle in mind. You may want to cut down on certain expenses such as EMIs and keep enough money for necessities such as unexpected health-related expenses.
- Eliminate All Unnecessary Expenses
A few bucks here and there can quickly add up to large sums of money today and compound into a sizable fortune in retirement. If a pizza costs Rs 500 when you are 40 years old, the same would cost over Rs 1000 when you are 70. The truth is that a lot of our spending is compulsive, and it is possible to develop new habits that are much more fulfilling and enjoyable. Sift through your spending and think outside the box because even small changes in your spending today can significantly impact your retirement savings.
- Consult a Financial Advisor
Financial experts can help you when it comes to organising your retirement portfolio. They can provide you with ideas on developing a strategy to get you where you need to go. Advisors can assist customers in weighing their alternatives concerning governmental policies. That also entails estimating the benefits that their government policies will presumably bring about in the future.
Financial advisors can assist you in achieving your retirement objectives since they have years of expertise and education. However, it is worthwhile to interview a few different advisors to discover the right person for you.
- Look into the Power of Compounding
Interest is a benefit of investing. In addition, as time passes, you receive additional interest on your initial investment. The power of compounding interest increases the long-term value of money. As a result, you should make long-term investments to let your cash grow. A modest contribution can grow into a sizable corpus over twenty years or more with compound returns. Purchasing ULIPs, also known as market-linked life insurance plans, is an excellent way to accomplish this. Additionally, ULIPs give you a chance to save and develop your money and financially protect your family’s future with a life insurance policy.
- Keep Saving & Investing
There is no getting around the fact that one of the critical factors in having money in your retirement years is saving now. Even while it could be challenging, it also helps you cultivate the discipline to spend less than you make, which might support you during the years when you won’t be receiving a paycheck. Saving money today is even more critical if you’re behind on your retirement planning because you’ll need it later.
A late start in retirement planning is better than no start. You will surely achieve a worry-free retired life with commitment and discipline. It’s better to start planning for your retirement now. You can still use your time even if you start saving for retirement later than most people.
Even while planning for retirement later in your working career may be more challenging, if you use the basic rules, you can do it at any age. Identify one or more suggestions from this article that you’ll use, and start putting them into practice right away. Start putting another approach into practice as soon as you have one solidly in place.
To assist you in saving for the future, Geojit provides you with various retirement plans. To learn more, go to https://www.geojit.com/financial-planning
First published in Financial Express