All the revolutionaries and freedom fighters gave up their lives to see India develop into a free country – socially, politically and economically. This brings us to the burning issue of financial stress that so many Indians face – financial independence after retirement.
How do I start saving for retirement? Where do I begin? How much do I invest? When do I begin? These are common questions that arise in investors’ minds regarding retirement. All of us want an independent life after retirement, but we do not know where to begin.
In spite of it being an extremely important factor to a secure future, we are still unclear about how to successfully plan our retirement. This Independence Day, let us take a step towards securing our finances for the future by successfully planning a financially independent retirement.
Save Today for Greater Tomorrow
You will need to save enough income to cover your expenses over the course of retirement with the help of a savings account. According to financial experts, you should ideally aim to save 10 to 11 times your salary while aiming at a retirement savings fund. This figure takes into account the inflation rate and will be enough for you to not rely on anyone for money in your golden years.Remember, an emergency can now be paid off with the inflow of future income but an emergency in the future will end up costing you more, once your sources of income are limited to a retirement fund.
Invest wisely for a secured future
This is probably one of the most important ways in which you can ensure a financially secure future. There are a lot of financial tools through which you can start saving up for retirement. Fixed Deposits and Mutual Fundsare often offered at higher interest rates and you can earn more money through their returns.
Fixed deposits mature over a pre-decided period of time are kept with the bank for that period of time, and offer higher interest rates than savings accounts. Mutual funds are similar to Fixed Deposits but are different in terms of withdrawal flexibilities. Mutual Funds are professionally managed investments that match the fund’s goals of risk and return.
You can also make investments through other methods such as recurring deposits where you deposit a fixed amount of money every month into your recurring deposit and earn interest rates as applicable to fixed deposits. Other modes of investments include investments through government bonds, investing in public provident funds, etc.
Plan ahead & avoid stress
You need to have a clear vision of the amount of money you would require to maintain your current lifestyle after you retire. You should enrol for government pension plans such as National Pension Plan. You can also opt for various retirement insurance plans. Hiring a wealth manager is also an option for you if you want to explore wealth management plans. Wealth managers are professionals who not only look after your finances but also your legal assets and secure them for your future.
These simple steps that you take today are going to ensure a better future for you tomorrow. Choose from the right financial tools to your advantage and make each day an Independence Day after retirement.
YES BANK wishes you a Happy Independence Day and a financially independent future.