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
- 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
- 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
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.