Retirement Planning: As you get closer to retirement, you will need to review your plan and make adjustments as necessary. Your investment mix, for example, may need to become more conservative as you get closer to retirement.
Experts believe in figuring out how much money you will need to live comfortably in retirement. Consider your lifestyle, inflation, and healthcare costs. Once you have a number in mind, you can start working backward to figure out how much you need to save each month.
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Keep in mind that the financial landscape can change, so it’s essential to consult with a financial advisor for the most up-to-date and personalised guidance.
Here are some general tips for financial planning for retirement in India in 2024:
Start Early: Experts believe that the earlier you start saving for retirement, the more time your money has to grow through compounding.
Take advantage of retirement-specific investment vehicles like the Employees’ Provident Fund (EPF), Public Provident Fund (PPF), and National Pension System (NPS).
Diversify Investments: Diversify your investment portfolio to spread risk across different asset classes, such as equities, fixed deposits, mutual funds, and real estate. Review and adjust your asset allocation based on your risk tolerance and market conditions.
Health Insurance: Invest in comprehensive health insurance to cover medical expenses during retirement. Rising healthcare costs can significantly impact your savings.
Budgeting and Expense Tracking: Develop a realistic budget to understand your current and future expenses. Regularly review your budget and make adjustments to align with changing circumstances.
Emergency Fund: Maintain an emergency fund equivalent to 3-6 months of living expenses to cover unforeseen expenses and prevent the need to dip into your retirement savings.
Financial Literacy: Continuously educate yourself about financial matters, including investment options, tax implications, and changes in economic conditions.
Retirement Lifestyle: Consider your desired lifestyle during retirement and factor in potential expenses for hobbies, travel, and other leisure activities.
Estate Planning: Create a will and plan for the distribution of your assets to ensure your wishes are followed and minimise potential family disputes.
Regular Review: Periodically review your retirement plan to ensure it aligns with your goals and make adjustments as needed.
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