Ankush Mahajan, Emerging FinaCare Services
Retirement plan is an essential part of financial planning. An increase in average life expectancy increases the need for retirement planning.
Inflation erodes the value of money with time. You may get returns above inflation in the long-term if you want to maintain your current lifestyle during retirement. You could invest in a financial instrument that can give a return above inflation based on your risk appetite.
Retirement planning cover all aspects of life- inflation adjusted monthly expenditure, medical emergency, and other liabilities. You may have to work hard and create a life for yourself and your family. As you near your retirement, you may have new dreams and goals in your mind. You may also want to fulfil your commitment like child’s marriage, higher education, world tour and dreams. With the help of retirement planning, you have the power of fulfil your dreams and wishes. Retirement planning means calculating today for future life, so that you continue to achieve your goals, establish the amount of money you will need and investing to grow your retirement time.
The main pillar of retirement planning is long term care as an increase average life expectancy, investment planning, inflation adjusted monthly income, healthcare, tax planning, asset planning, protect post retirement lifestyle, increase cost of health, falling interest rate scenario and protection for spouse and dependent.
In India we will not be supported by any patient structure and so planning for the retirement life is a crucial aspect with the help of financial planning you utilise your available financial resources in the best possible manner so that you can achieve your financial goal.
Views are personal: The author is Ankush Mahajan, Emerging FinaCare services Pvt Ltd, Bhilai
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