Future is uncertain and you need to ensure security of the uncertainties of future. With increasing life expectancy and soaring inflation there is a rising need to save for future.
It is highly essential for having a comfortable post retirement life.
Before starting your savings, following points should be analyzed:
1. Assess your retirement savings
2. Discuss your monetary repercussions of the retirement financial plans.
3. Enlist your economic source of income
Assess your Economic Requirement at the time of Retirement:
Here are listed some important ways to guide you in determining how much savings you require while you retire.
Decide your present living expenses:
You require about 65 to 70 percent of your present expenses at the time of retirement. So figure out your plausible expenses depending up on you current cost of living.
Adjustment of your desired retirement income:
If you think you might need some extra expenses during retirement then you should make added efforts such cutting down on travelling, frequent dining out, etc. to have extra money in future, you will have to cut down on current expenses.
Track on the inflation cost:
Since inflation is on incline and everyday things are becoming costly. What you need in the first year of your retirement might be far less than what you require in the eleventh year of retirement. So it is good to plan your retirement income in ascending order.
Estimate how long you’ll be retired:
Determine the tentative age of your retirement. This will help you assess the time left to start saving for coming time.
A simple way to analyze how much you need to save is to add all expected expenses during retirement and save the total amount.
You may take the services of a financial consultant while planning for saving for the future.
The above tips will be beneficial in understanding the amount of savings and will ensure you a good post retirement life.
Believe in the golden statement’ it is never late to start planning for retirement.” If you haven’t thought of it yet, start now.