Smart Retirement Planning: Here's What You Need To Know

Retirement Planning

Retirement planning is important for all people irrespective of their financial background. One can also plan for a stable financial future despite having a low income

Start Small, But Early

For an investor, it is important to start savings and investing some portion of income towards retirement planning.

Compounding

Time is a great ally as the longer your money stays invested, the more it grows. This is the benefit of compounding.

Pension Schemes

There are government-backed schemes like Atal Pension Yojana and Pradhan Mantri Shram Yogi Maan-Dhan which help seniors in attaining social security in their old age.

Spending Habits

One should keep a monthly expense tracker to get an idea of where money is being spent. This can help in relocating that overspending towards savings.

Emergency Fund

In order to avoid using retirement savings at the time of crises, one should set aside 3-6 months of basic expenses towards an emergency fund.

Tax Benefits

There are schemes like Employees’ Provident Fund and Public Provident Fund where contributions are eligible for tax deductions.

Keep In Mind

Do keep in mind that retirement requires one to stay healthy, learn new skills and own a small home or plot for safety.

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