Before the pandemic, 49% of people discussed their retirement plans; today, the number has risen to 67%.
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For servicemen who are working in either a government or private job, retirement is an important event in their lives. While looking forward to retirement after tedious work for decades is natural Some companies provide ex-employees with a significant amount of pension but it may not suffice and more importantly, not all companies give you a pension. Therefore, it becomes necessary to financially secure yourself before your retirement so that life is easy after you hang your boots. Today, we are telling you where, how and how much you should invest for a tension-free retirement. We will also talk about the age to start investing.
According to a poll by PGIM India in collaboration with Nielsen and IQ, more people than ever are considering retirement planning. Before the pandemic, 49 per cent of people discussed their retirement plans; today, the number has risen to 67 per cent. In addition, they wish to make the most of their lives.
Upon landing a job, you will undoubtedly make money till you retire. The earning figures will greatly vary. While some will make lakhs annually, some people will get hired on packages worth crores. As a result, you must prepare your retirement portfolio with the assistance of a professional.
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Understanding your goals and demands allows a professional to handle financial planning. Hiring a professional will have the benefit of an expert maintaining your portfolio and making adjustments as needed. Due to the constant change in both local and worldwide geopolitical conditions, adjustments are occasionally required.
How much money should be saved for a tension-free retirement depends on personal circumstances. It is generally advisable to save 10-15 per cent of your salary every month. A financial advisor can help you identify options that best suit your retirement goals.
When talking about when to start investing, the earlier the better. Financial planners say that after completing your studies, you should start investing as soon as you start earning. This is because the sooner you start saving, the more time your money will have to grow. The profit of each year, which will become the capital in the next year, will also give profit to itself. The power of compound interest or compounding should not be underestimated.
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Most people select one or more of the four retirement planning alternatives. The National Pension Scheme (NPS), Provident Fund (PF) or Private Provident Fund (PPF), mutual fund retirement plans, and retirement insurance policies are the most popular of these.
