The Best Time To Plan Your Retirement Saving Plan Is – NOW

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The Best Time To Plan Your Retirement Saving Plan
Is NOW
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• Retirement is a goal which cannot be funded with
  loans. Earlier you start better off you are, as
  you can devise a strategy which works in the long
  run. Also the strategy can be re-balanced if need
  be.
• Importance of retirement planning in India. In
  the past few decades the culture of our country
  has changed at a very fast pace.
• Previously people use to live in a joint family
  due to which the importance of retirement
  planning was not felt.
• These days most of the people are moving towards
  metro and other big cities in search of better
  life and job due to which nuclear family culture
  is making its way.
• Also the constant increase in the inflation
  across every sector is making it difficult for
  these families to survive. According to a survey,
  currently 65 of Indian population is below 35
  and in the next 20-25 years, this young
  population would be near to the retirement. These
  are the few reasons due to which retirement
  planning is more required than any other goal.  

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• So how one should start saving for retirement,
  how much money is required and what are the
  options available.
• Lets find out answers to these questions and
  make retirement planning easy for younger
  generation. How much money is required? Few years
  back experts used to advice on how to accumulate
  Rs. 1 cr. for retirement. 
• The amount of Rs. 1 cr. 15 years back has become
  Rs. 3-4 crore today due to constant increase in
  inflation. This ideal corpus amount is not the
  same for everyone as the inputs required to
  calculate the corpus such as current age,
  expenses, rate of return, retirement age varies.
    Thumb rule says by the time one retire around
  58-60 years of age, retirement corpus should have
  100 time of last drawn monthly salary.
• However, one should always do the proper
  calculation before starting. Lets understand the
  calculation with the help of below example-
   Suppose Nachiket wants to retire by the age of
  55 years. Currently he is 30 years old with a
  monthly expense of Rs. 50,000. Considering
  average inflation to be around 7, at the age of
  55 his monthly expense would be around Rs. 2.70
  Lakh.  Now, if we take life expectancy around 80
  years, then he would require this amount every
  month for next 25 years.

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This can make a huge difference to your
retirement corpus.)   How one should start saving
for retirement? In India people start thinking
about retirement once other goals are completed.
This is wrong approach. People should understand
that goals such as children education and
purchase of house can be taken care even with the
help of loans but no one in this world would lend
you money to survive during retirement. So as
soon as one starts earning, he should start
saving plans for retirement. The biggest
advantage of starting early is that one will have
to save fewer amounts and will also get
compounding benefit for at least 20-30 years. In
the above used example, if Nachiket starts today
he would have to save at least Rs. 23,000 per
month, the amount will increase to Rs. 48,000 per
month if he starts after 5 years. What are the
investment options available for retirement
planning? For employee class in India, there are
defined contribution plans available such as
Employee's Provident Fund (EPF) where the amount
towards this contribution is deducted from the
salary and employer also contributes towards this
fund. Also an option of Voluntary PF is
available for employees where they can contribute
but employer will not.  Similarly, Public
Provident Fund (PPF) is another option available
for every individual. The government pays fixed
interest on the amount invested every year in
PPF.  
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One can use direct equity as a long term saving
plans option. Now this is advised only to those
who can manage their own equity investment. If
not then as an alternate there are many good
equity mutual fund schemes which invest in equity
market and can be a great option for retirement.
Also these days few mutual funds companies have
launched schemes which are dedicated towards
retirement planning.   To conclude, one should
always start investing early towards retirement
goal with a proper strategy to follow. One can
select a product according to his risk profile,
which beats inflation in long term, maintains
liquidity and also gives tax free returns.
However, over exposure towards one asset class
can some time create imbalance in the portfolio,
so to avoid such situation, and one should always
revisit the investment strategy and rebalance the
portfolio from time to time. source
http//www.moneycontrol.com/news/retirement/the-be
st-time-to-plan-your-retirement-is-now_1364961.htm
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Thank You..!!!