Have you ever thought what your life is going to be like after 60? Well, if you have not yet given it a thought, then we are sure you will begin thinking after reading this article. In this article, the in-house financial experts have taken out the time to highlight the importance of retirement planning for every individual in his mid-20s and 30s.
What is Retirement Planning?
Retirement Planning, as the name suggests, is planning for your retirement. It refers to determining your source of income and revenue goals, including the procedures and decisions required to achieve financial independence later in life, during old age.
Why is Retirement Planning important?
Life expectancy: With advancement taking place in the general infrastructure and medical facilities around the world, the average life expectancy of an individual is going to rise. Thus, if you as an individual are going to live longer, then it becomes all the more natural for you to plan your retirement and ensure financial independence in the days when you won’t be able to work.
Retirement means a break from working: After working for almost 40 years in your life, retirement is a time when you want to sit down and watch the birds fly or the children play in the playground. However, if you are not working, then there won’t be a positive cash flow in your account to help you pay your bills and so. That is when your retirement fund and savings can help you.
To maintain your standard of living: Being an earner half of your life, you have created a lifestyle for yourself and your dear ones. Once the income stops, it will become hard to maintain the same lifestyle with insufficient funds and savings. However, with retirement planning that might not be the case, retirement planning enables the individual to save a portion of their income in the proportion of the sum they might require to maintain the same living standard later in life with no income.
Medical Crisis: Advancing age makes an individual prone to medical issues. Further, considering the expensive nature of medical treatments all around the world, it makes it crucial for us to ensure that we have a sufficient amount to sail us through this crisis even when we have no source of income.
No state-sponsored pension: Presently being more specific of the Indian society, retirement planning is all the more essential for us. The reason being that unlike the USA, the Indian government does not provide any state-sponsored pension to ensure the well-being of the ageing community of its state. We have to be responsible for our well-being at a later stage in our life.
Retirement planning is the most logical way forward for anyone who wishes to secure his or her well-being when there is no positive cash flow taking place in their finances.
Are you looking for a reliable financial planner in Kolkata to help you plan your retirement? Contact Paisa Invest today to avail the expert advice on the same.