Financial Planning for Retirement

Retirement Planning is of utmost importance

We live in challenging times. Unprecedented political, social, economic and technological change means it has never been more challenging or more important to save for a good retirement.

• As the healthcare systems globally as well as in our country gets better day by day, the ageing population is poised to live longer.
• Retirement is no longer a short period in which one fulfills ones later life aspirations. For majority it would be a long period with varied financial implications. The financial needs for a 75 or 85 year old will differ significantly from the 65 year olds.

Important issues like the ageing  population, rising healthcare costs and long term low interest rates are affecting the retirement plans of people around the world.

 

What’s your plan for Retirement ? have a look at the pointers below :

 

 

Do you know how much is enough ?

• Only 33% of Indians save regularly for their retirement, according to HSBC’s the ‘Future of Retirement: Bridging the Gap’ report.
• Why don’t people save enough …..
  • They don’t know how much is enough
  • Retirement seems distant to most… Be wise while spending  for today and saving for tomorrow
  • More than a third (36%) of retirees say they should have started saving at an earlier age – So Start Today..

Calculate Your Retirement Corpus

Above is an example of Retirement Corpus calculation. Contact us for Excel sheet of the Financial Calculator we would be glad to share it with you or mail us your details we will work it out for you.

 

Challenges faced while accumulating Retirement Corpus

• You can save only part of your income , As you have to take care of current expenses – Ensure Discipline and gradually increase your savings as time goes by..
• Your savings should be big enough – to replace the regular income required when you retire  – Set aside as much as you can
• Your Accumulated assets should cover your expenses – which will also grow with the inflation –Don’t Withdraw the funds you save for Retirement in any case “Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.” – Charlie Munger

 

Where to Invest ….

 

Mutual Fund Retirement Plans

With interest rates at historic lows, 60% of working age people think they will need to move their money from
savings into investments and 68% actively move their money around to get the best deal. As per the HSBC Future of Retirement – Shifting Sands India Report

 

There are currently 25 different Retirement funds where an investor can invest for his goal. One can select a single scheme or a mix of them, depending on the risk profile. Consult your Advisor or research on the schemes before making a decision.

 

Sharing with you the snapshot of the schemes available.

 

As per the HSBC Future of Retirement – Shifting Sands – India Report Technology is changing the way people save for retirement. 49% of people have searched online for Retirement investment options and 27% spoke to an advisor. People are using technology in different ways to plan for and manage their retirement plan.

 

Embrace new technology to make planning for your retirement easier. Online planning tools can help you
understand your retirement funding needs and track progress towards your goals. Seek professional financial
advice if you need help.

 

Do share your views and get in touch if you need any help.