How to meet your retirement goals comfortably?


Have you wondered what your retirement period would look like? Today, the lifestyle of every retiree can be completely different from that of your parents. Early retirement is a new phenomenon that relates to millennials today. As an aspiring retiree, you might wish to live an active life after retirement. Hence, you might have your list of goals, such as traveling pursuing exciting hobbies, taking up photography, and so forth, on the top of your head.

You might require years of planning and many resources to reach your retirement goals comfortably. Therefore, let’s understand the top six tips mentioned below that can allow you to achieve your retirement goals comfortably:

 retirement goals comfortably

Consider your retirement age.

The usual retirement age in India might be between 55-60 years. However, the retirement age gradually decreased, reaching 45-50 years. While many of you might still wish to retire at the usual age, the rest might aspire to bed early. As an aspiring retiree, you should consider your retirement age before you begin your planning process. After you figure out the age at which you want to retire, you can proceed with your planning to build a secure future without professional income.

Identify your post-retirement goals.

Gone are the days when sitting back home to relax would be a top priority after retiring. Today, 75% of the Indian population retire early to live high-quality lives and fulfill their retirement goals. Ideally, you might aim to achieve your goals after retirement since you might have had major financial responsibilities for your family at a young age. Hence, your dreams, such as traveling, starting a new venture, pursuing interesting hobbies, and so on, can take a front seat after your retirement period.

Determine the retirement corpus.

Retirement corpus can be the total funds to help you lead a comfortable lifestyle and meet your post-retirement goals. It would help if you calculated the required corpus on a retirement calculator to get the estimated amount before you retire. When you get an estimated amount, you can understand if the amount can suffice your financial needs after retirement. You can accumulate more funds if the estimated amount is inadequate for your retirement.

Start retirement planning at a young age.

The right time to start your retirement planning is at a young age. When you are young, you might have ample time on your hands. Due to time in your favor at a young age, you can build a substantial corpus for yourself by the time you retire. Moreover, the power of compounding can allow you to earn interest on your returns when you are young. For instance, an early investment of Rs. 5,000 can enable you to generate a retirement corpus of Rs. 75 Lakhs.

Invest in a pension plan.

After retirement, it can be obvious that you might not have a source of professional income. Although the flow of your income stops, you can still receive a retirement income with the help of a pension plan for your financial well-being. A pension plan can let you accumulate wealth during your active years and allow you to withdraw funds after retirement. Numerous pension plans, such as annuity plans, unit-linked pension plans, and National Pension Scheme (NPS), can guarantee income after retirement.

Create a contingency fund.

Due to high uncertainties, there can be a rise in unfortunate events such as critical illness, loss of income, physical disability, etc. Such situations can exhaust your retirement savings if you do not have any other financial backup to resolve them. To prevent your retirement savings from depleting, you should build a contingency fund to consider such expenses for the next 3-6 months.

To sum up, retirement planning with adequate funds can bring you a step closer to your life goals. Hence, it can be crucial to start your retirement planning as early as possible, save adequately, and invest in the right retirement tools. Moreover, the top six tips mentioned above can let you achieve your retirement goals with ease.