How to make your post retirement plans

Monday, June 15, 2009

How to make your post retirement plans

You had just started your career, and you will be baffled if someone poses you this question. 

Young generations believe that post retirement plans are just not their cup of tea. 

They may say ‘let me enjoy the fruits of my life, let me marry and have children, and then I would start thinking about postretirement plans’.

 There are some who think their children are their best investments and put all their resources to provide the best education for their children.

Though, everybody has a specific way to see one’s own life, still making post retirement plans when you are young is an intelligent move to make your life prosperous.

 It’s important for you to take few things into account before you plan your step forward.

 Considering that you are relatively young now, what is your current lifestyle and how would you like to lead your life post retirement? Are you fed up of your current lifestyle and want to lead your life a little different from what you have been doing till now?

 You are spending a lot on your children’s education, and it’s taking away a sizeable chunk from your present, pay packet.

There are simply too much spending for the month for you to make any savings. You had tried your best to reserve in the past but just couldn’t do so. But time is running away, and you have to make a decision as soon as possible. 

Here are few pointers for you to keep in mind while making post retirement plans.
  • How many years are left for you to retire?
  • Are you a government employee? If you are a government employee, then you are eligible for monthly pension, which makes your life a bit easier, once you retire. But private sector employees are not so lucky; they will have to strive hard to save money for their future.
  • Is your present lifestyle involves lavish spending? Do you intend to continue spending the same way as you had done earlier?
  • Do you have your ancestor’s property? If so, you may get a bit relaxed and organize your savings for the future, accordingly. Others might not be that lucky, they would have to slog to generate funds for the future.
  • Any savings that you might now have will depreciate with time. The value of money decreases with time, and the effects of inflation largely weaken the value of money.
  • What is the amount your employers will pay you as gratuity once you retire? What are the other post retirement benefits?
Find answers to the above questions, and plan your savings accordingly.

 Remember, the time that gets lost will not come back. 

It’s essential that you save money which would make your future safe. Right investment of your hard earned savings will make your post retirement living prosperous and joyful.

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