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Exit Guide

Savings

Deciding what to save for without having a goal to work towards can be difficult. Hence, setting post retirement goals are primary in helping to guide savings

Goal Setting

Set post retirement goals. Think of things that come to your mind when you think of your time post retirement

Goal Setting

Since you are already thinking of all things that you may need to plan for, remember that post retirement goals are also dependent on the following factors

Activity

Now make a list of your own so that you can always aim to work towards saving for those goals

List of monthly expenses  Cost
Rent
Electricity
Food
Medicines
<Add your items to the list>
<Add your items to the list>

How much will you need to lead a comfortable life in your old age?

 

Understand Income and Expenses

Read below to know and learn how your understanding about your income and expenses lead to better planning for savings!

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    Understand your income and expenses and see how much you can keep aside each month to save for your goals

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    Once you know how much you can save each month, check if that would be enough to reach your aspirational goals.

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    Well, one is required to make effort to save more everyday to beat growing inflation and ever changing needs. For this increasing incomes to increase savings is important .

Quick Tip

You may be tempted to postpone savings for retirement later in future when you will have more earnings. But, remember that the earliest you start, the more benefit you will get in old age.

Your future income is dependent on the following factors. So, always aim to reduce expenses as much as possible to be able to save more today

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Radha says Uff, Gurpreet, you don’t understand It is never too early to start retirement planning. Gurpreet responds to radha that he doesn’t earn a lot now. He end up spending all that he earn. So, how will he save. As he grow older, his income will definitely increase and then he will think of saving and planning for retirement. Radha responds that along with his income, his responsibilities will also increase as he grows older, Gurpreet then says So, your expenses, too, will increase. Gurpreet clarifies, Responsibilities like what. Why will my expenses increase.

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Radha says You will get married and will have family responsibilities. You will have children and will have to take care of their education, food, clothing, etc. Your parents will get older and will need to be taken care of. Gurpreet responds Hmm. You are right. My responsibilities will increase as I grow older. Radha says So, it’s still not late. Don’t wait any longer. Start planning and saving for retirement

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    Points to remember:

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    What part of your income you can afford to save.

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    How much risk you can take with your investment.

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    What kind of life you want to live in old age.

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    What are some health issues you can face in old age.

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    How much inflation to plan for.

Continue reading to know about stage two which is accumulation of wealth for retirement planning

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