The primary aim of having a retirement plan is to lead a life of comfort and financial independence in the retired years of life. Though opting for retirement planning is a one-time decision, the process requires continuous planning and hence is an on-going process.
One of the biggest advantages of planning and updating the retirement process on a regular basis is the ability to incorporate new changes in the plan and to modify existing goals.
The characteristics of retirement planning keep the planning process an on-going affair.
Let’s take a look at the following to understand more about it in details:
- The average age of retirement is 65 and usually, people plan their retirement on the basis of the average life expectancy. Though it’s a norm, planning your retirement on the basis of average life expectancy can be dangerous. With rapid improvement in medical science, it won’t be a surprise if a person outlives the average age limit. In that case, regular modification of the existing retirement plan is a good practice to enjoy a financially secured life till the end.
- Depending on a person’s life expectancy, retirement period can stretch up to 20-30 years, which is a long stretch of time without any permanent source of income. Indulging in regular retirement planning acknowledges the retirement period and allows them to mould their finances as per their immediate needs.
- Just because retirement life comes after work life it doesn’t mean a young person at the beginning of their career shouldn’t be botheredabout it. To minimise the financial burden towards the end of your work life and to ensure a comfortable lifestyle after retirement it is best to adopt a retirement planning early and continue it for the longest.
- Planning your retirement begins when you understand from where the cash flow will generate that could allow you to lead a comfortable retired life. Retirement planning helps you to estimate thesource of the cash flow; it can either come from personal savings or investments or any wealth that is currently at your disposal. Annual or regular projection of such cash flow will help to account the changes required to maintain a desired lifestyle after retirement.
- When it comes to the investment market, “Change is constant”; slightest movement of the market may affect your investments too. The different phases of the market will have a different impact on your accumulating fund for retirement. To maintain a comfortable lifestyle after retirement, monitor and update your existing plan for better results.
- In a nutshell, retirement planning should be treated as a continuous process that will benefit you more if you adopt it early and analysis it on a yearly basis. So that you can modify it as per your changing requirements and enjoy a financially secure and independent life of comfort after retirement.
Irrespective of your age adopt a retirement plan and scrutinise it annually to enjoy maximum benefits. Consult our financial experts to avail their expertise in building and scrutinising your retirement plan for a better tomorrow.Follow Us: