Who doesn’t want a peaceful retirement, right? That’s what all our hard work goes into. Though all of us might wish for a peaceful and fulfilling retirement life, do all of us know how to get it? Have you ever thought about it – that your money would run out while you are in the period of your retirement? All of us think of that.
If you watch Breaking Bad, the highest-rated series in television history, you can see that the protagonist works to earn a lifetime settlement in a few months. How did he calculate how much he would need? Everything works well with planning.
In this post, we will discuss retirement planning in India for 2024 and how you need to do it right.
Tips and Tricks to Plan for Your Retirement in the Right Way
Here is a long list of tips you can keep up with in order to cherish your best retirement life and financial stability. Before you find yourself a Retirement calculator to do your math, keep these points in mind:
- Always Have an Emergency Fund
Why we put the point of emergency first because it needs to be your go-to money. Just picture this: if you suddenly need a relocation, you need around Rs. 1 lakh to make this move. Would you want this to go from your salary, which would then abolish all your monthly payments and needs? Would you want this money to go from your savings and investments, which further disrupts the entire plan you have made? Definitely not, right? That is why you need to have an emergency fund.
This emergency fund need not be that big; even something as small as Rs. 50,000 can come to your rescue when you need it. Also, keep in mind that once your emergency fund has been used, you need to create another emergency fund for the future. So, your emergency fund becomes an ongoing element.
- Invest in a Good Medical Insurance Policy
Investing in a good medical insurance policy can be essential for your retirement. You know medical expenses are quite expensive. A good insurance policy can cover all of your hospitalisation expenses, surgery, if any, prescription costs, and everything under the roof of the policy. This means you do not have to spend your salary or savings on medical expenses ever.
- Select a Diverse Investment Portfolio at the Start of Your Career
When you choose a diverse investment portfolio at the beginning of your career, it is easier to make financial choices. You can manage risks much more effectively. Since you have a long way to go, you are given the capacity to take some risks with your investments. You should also consider diversification while you invest. Moreover, diversifying your investments lowers the impact of poor performance in any one area. So, when one of your assets loses value, the others in your investment portfolio will be stable or even gain profits. By investing in different sectors and regions, you can take advantage of growth opportunities in various parts of the economy.
- Invest in a Suitable Pension Scheme
Investing in pension schemes is crucial while securing the future of retirement. A pension scheme can give you a steady income, and during your retirement, you can make sure you have enough funds to cover your daily expenses, especially when you no longer work. Knowing that you have financial safety gives you peace of mind and can reduce your stress while enjoying a comfortable retirement life. Some of the best pension schemes in India at the moment are – EPF, PPF, National Pension Scheme, and the Post Office Pension Scheme. You can also avail yourself of tax benefits on pension schemes that not many other investment schemes offer you.
- Store Some Valuable Gold
Storing some gold as part of your investment strategy can be a prudent way to diversify your portfolio and safeguard your wealth. Gold can beat inflation and help you get where you want to go with your retirement planning. Gold has always restored its value over time, and it serves as a great hedge against inflation and always increases in value. This precious metal usually moves independently of stocks, bonds, and other investments, which makes it effective to diversify your entire investment portfolio. Even during currency fall and economic downturns, your gold investment can be a great way to retain value.
This is just the tip of the mountain that you need to climb when you are aiming for retirement cash. Just remember to be safe with your investments and think ahead of time. Most importantly, never leave out the element of inflation.
End Note
You can look out for yourself for retirement planning as early as your 20s, and it makes the process much easier. Most Indians do not think too much about retirement until they reach their 40s and 50s, and if you have just started working – it is a great time for you to start investing, saving and more with the goal of retirement. Even if you are in a later stage, no worries – you can start now; all you have to do is invest a bigger amount.
