Retirement Planning

After we have completed planning for our children's future, it is time to consider planning for our own future, i.e., Retirement Planning. 

What is the Need for Retirement Planning?

Did you know that from the very first day you receive money, the pocket money you received as a child, you have been an 'investor'? 

Think back to the first day you received pocket money. You most likely spent it on food, toys, games, movies and other entertainment, and travel.  How much of it did you save? Not much, if you were like most children in school and college. You invested in instant gratification, as do most youngsters. From this young age, your activities, your spending patterns, formed a habit. Your investment behavior started to get set. Your investor psychology began to solidify. Then you got your first job and started to mingle in the workplace. At work, you interact with your colleagues, slowly you hear about people making investments in Tax saving mutual funds, or in their PPF. Your HR talks to you about EPF so you know about that too. You glean investment facts haphazardly from your colleagues and without really verifying the data, make further investment decisions. You get married, then have children, educate your children, somewhere along the line you buy a home by taking a home loan. The expenses continue, and your saving, spending, or investing continues as it did earlier. 

Your investments receive just enough of your attention for you to feel like you're doing something useful about it. With each step you take along this path, your retirement suffers. The wealth that you could have built for this crucial goal, does not get built. 

Retirement is a reality that many of you may not be able to accept, but it is pertinent to realize that one day this reality will hit you and you need to be prepared. 

There is no need to fret if you haven’t started on this goal yet. This section of our module can guide you on how you should approach retirement planning.