Life

Have a carefree retirement. Plan for it.

Here’s how you can plan for a carefree retirement

Did you know that actress Judi Dench did not make her movie debut until she was 60? Many people wrongly assume that life is over once you retire at the age of sixty. It is merely the end of one inning and the beginning of another. And after working hard for the past 30-35 years, everyone has the right to a fun and carefree retirement. In this article, let’s see how that is possible.

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Income and expenses

As long as you work, you receive a stable income. Your salary is promptly deposited into your bank account on the first of the month. But this scenario changes once you retire. Your income abruptly stops, but your expenses continue to remain the same. And in retirement, your medical bills may increase. And lastly, your spouse is still waiting for you to fulfill the promise of going together on an overseas trip. So, how can you enjoy a beautiful and financially stable retirement without an income?

Retirement planning

Let’s do a small exercise. Check out any retirement calculator website online. These websites tell you how much money you need to save for retirement based on your current income, expenditure, and lifestyle. Here is a spoiler alert: it is going to be costly. Today, a 30-year-old person earning Rs 50,000 per month must save around Rs 6-8 crore for a comfortable retirement. This is a huge amount, and unless you win a lottery, it is impossible to create such a large corpus overnight. But the good news is that you don’t need to do it daily. You have 30 years to achieve this goal.

Importance of investments

The best way to reach your retirement goal is to start investing right away. And among the multiple investment options available, mutual funds can be a good investment partner in this long journey. Equity funds have the potential to offer high (inflation-beating) returns over the long-term. And by investing through Systematic Investment Plans (SIPs), you don’t have to worry about market timing issues. Just invest a fixed amount of money into a fund month after month. And after a few years, the corpus grows steadily in front of your eyes.

Here is an example: Imagine you invest a sum of R 12,000 each month into a fund that offers a 14% annual return rate. In thirty years, you can have a corpus of Rs 6.7 crore! In other words, your retirement fund is ready. And the best part is that you can increase this corpus by increasing your monthly investments. At the beginning of your career, it is alright to invest a small sum. But as you grow older and your salary increases, it is good to make bigger investments into this fund.

Conclusion

These days, 60 is the new 30! After they retire, many people discover new things in the world and also about themselves. Who knows, you may be a great artist that the world is waiting to find. You may want to explore the world, or you may want to sit back, relax and take a sip of chilled red wine on the porch of your family home. It is your choice, and with a good retirement plan, you can make these dreams come true.

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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