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Why is retirement planning essential?

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Retirement planning is one of the most essential things to do in life. As a young person in your twenties or thirties, you may feel your retirement days are very far away, but you will be cutting your sixtieth birthday cake before you know it! It is therefore highly advisable for you to start your retirement planning well in advance as doing so offers many benefits. Let us find out more from the points mentioned below.

  1. Starting early gives you time – As stated, it is never too early for you to start saving. If you start early, you get ample time to build up a sufficient retirement corpus by depositing small sums of money at regular intervals. This does not prove to be a financial burden and you can build up the fund easily and at your own leisure. So start planning now without wasting any more time.
  2. You can remain financially independent – If you have financial support from your retirement fund, you can remain financially independent even after you retire and your regular income stops. You do not have to depend on your children or other relatives for your day-to-day financial needs. This is an extremely pertinent reason why you should consider saving for your retirement. Pension amounts are never that large and if you rely solely on your pension, you will probably end up asking for financial help from others.
  3. You can secure your health – When you are retired and older, your health problems will increase too. If you have a retirement corpus in place, you can afford your own medical bills. You can get treated at the best of hospitals and not have to make any compromises on your own health. This is another very important factor why you must start planning for your retirement without any further adieu.
  4. You can travel the world – Your professional and personal commitments may not allow you to travel the world or do things that you crave to do. But when you retire and your children grow up, you become free and have the time to explore your interests. However, to do so, you need a financial backup. Start saving for your retirement years so that you have the money to do what you want to do when you have the time and opportunity to do what you want to do!
  5. You continue your lifestyle – And finally, you do not have to compromise on your lifestyle after you retire if you plan ahead. Once your regular income stops, you must have the money you need to pay your rent, travel, eat out, etc. You should not have to move into a smaller house or cut out on your entertainment requirements. Just plan for your retirements and you can always continue to maintain the type of life you want.

 

These are the main reasons why you need to plan for your retirement years. Speak to your financial advisor and choose the best way in which you can build up the corpus. There are many options such as pension plans, SIPs, etc. Choose the option that is best suited for you and continue to live life on your own terms.

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