If you do not want to face the problem of money at the time of retirement, then you have to plan for retirement from now.
Almost every person doing a job dreams that he can leave the job of 10 to 6 as soon as possible by raising money for his future. That is, leaving the job at the same time every day, he thinks of giving time to his desires and hobbies. But most people are not able to leave the job just because they are worried about their retirement. Everyone has to plan for retirement corpus at least for the age of 60 to 80 years i.e. 20 years. Our savings during the job should be so that we can spend our life comfortably after retirement.
Start investing early it is most important for your retirement planning
The best way to make a good retirement plan is to start investing early in your career. By doing this, you can make a very large corpus by investing less every month till retirement, because your money will grow very fast due to the power of compounding. Another advantage would be that you can invest more every month.
How much money you need at the time of retirement?
The first step in retirement planning should be to estimate how much money you will need at the time of retirement. Keep in mind that with retirement money, you will meet your needs in post-retirement life. In such a situation, if you already know how much money will be needed, then you can start investing accordingly.
Decide like this, how much money will be needed at the time of retirement?
Let us see an example to calculate how much money will be needed at the time of retirement. If your family is of four people and your current expenditure is 50 thousand rupees per month, then according to present retirement planning for two people (husband and wife) will have to be done at least 25 thousand rupees per month. It is also a matter to keep in mind that time you will not have any responsibility for children’s education and marriage.
25 thousand now means 60 thousand till then
Inflation will also increase till retirement. Let us assume that by then inflation will increase by 3 per cent. Now calculate the number of years after which you are going to retire, on the basis of 3% compound interest. If you are 30 years old today, then you will retire at the age of 60, that is, take out the compound interest of 30 years. If we look at the compound interest, then according to today’s 25 thousand 3 percent, after 30 years it will be about 60 thousand rupees.
In such a situation, one and a half crore (1.5 cr) rupees will be needed on retirement?
Now assume that at the time of retirement you will get 5% annual return on your total savings, then for an income of Rs 60,000 per month, you should have a retirement corpus of at least Rs 1.50 crore. If this happens, then you will get about 7.3 lakh rupees annually and about 60 thousand rupees monthly. Now you have to plan accordingly that how much money to deposit every month so that at the time of retirement you will have Rs 1.50 crore.
Will have to invest Rs.8000 thousand rupees every month?
Suppose if you invest money, you can get an annual return of 10 percent. By investing in NPS, you can get an average return of 10 to 12 percentage. In such a situation, you will have to invest Rs. 8000 every month, so that you do not face any problem at the time of retirement. Keep in mind that this planning has been done in such a way that you start investing at the age of 30. If you start this investment at an older age, then you may have to invest more money every month.
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I sincerely hope that I have given you complete information about Saving for Retirement at theage of 60 years and I hope you people have understood about my article. And if you have any query or question regarding this then please contact through my email or you can also give comment / feedback.
