PolicyTray

Insurance Blog

Planning your retirement


A study shows that of the Generation Y – those born between 1980 and 2003, almost 60% do not think about their retirement plans at all!

The biggest myth about retirement is that we believe that we are too young to start planning. We’re going to bust that myth today –because the earlier you start planning and working on your retirement the easier it will be for you.

Balancing the life they want to live today with the life they want to live in retirement, is not as hard as it sounds.

1.       KNOW YOUR EXPENSES

The first step to planning your retirement is by knowing how much you’ll require to keep your lifestyle the same. Calculate your monthly expense, and make sure that your retirement plan covers that amount. Often, it has been found that retirement costs more than what you need for your current lifestyle. So, make sure that you are prepared to meet those expenses as well!

2.       PLAN TO MEET THEM

Once you know how much you need, the next question you need to ask yourself is this: How are you going to meet this expectation? How are you going to save up to this? You need to strategize your current wealth and earnings in such a way that they are channeled into a secure retirement fund. Stick to the plan, and do not retract from your goals and targets.  

3.       START SAVING AND INVESTING

Be smart, cut down on your daily expenses and save as much as you can.  When you spend so much for your daily coffee – almost Rs. 160 in Starbucks or CCD. All these amounts add up into the Latte Effect. Consider Rs. 150 twice a week – this adds up to about Rs. 1200 a month.

Imagine what Rs. 1200 SIP in a good equity fund can do for your portfolio over the next 40 years!!

Every single dimension of your lifestyle is worth saving, and will fatten up your retirement fund.

Happy Saving J

WRITTEN BY: BALAKARTHIGA.M



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