The process of planning and managing your short and long-term finances to help achieve your financial dreams both during your working years and retired life is Retirement Planning.
Retirement planning helps you plan how much to save today for retirement; how to invest your savings and get the desired returns; how to protect your assets and provide for in case of unfortunate events and how to make better use of retirement income post retirement.
Retirement planning also helps you maintain your desired lifestyle during old age. It provides financial security to you and your dependents by enabling you to make wise investments during your working years. It also enables you to make the best use of your hard-earned money after retirement. One of the key benefits of effective retirement planning is to cover for any contingencies arising from uncertain events which can compromise your ability to meet your financial goals.
Retirement planning is not an art but a definitive science which requires a 360-degree approach to studying one’s current financial health, long-term goals and risk appetite to design a plan that addresses the retirement and other long-term goals of an individual.
It involves a step-by-step approach:
1st: Identifying your financial and retirement goals
2nd: Analysing your current financial situation
3rd: Risk Profiling
4th: Asset Allocation
5th: Investment Allocation Strategy
6th: Periodic Monitoring and Rebalancing
Be prepared for your life after the paid work ends, not only financially but also in all the aspects of life. Retirement planning starts long before you retire – the sooner you plan, the better your future will be.
