Retirement

No one wants to spend their entire life working or relying on social security programs for survival. We’re all aware of how vital pension planning is. However, we still struggle with questions such as when I should start, how much I should invest, and what age is best to say adieu to a hectic life and enjoy the peace of retirement.

So, to help you navigate this maze, we’ve created a comprehensive guide to pension planning. By the end of this article, you will have the answers to all of your retirement planning questions.

So, let us get on the wheels.

What is Pension Planning?

We’ll start our beautiful exploration journey by defining precisely what pension planning is. Pension planning is the process of preparing for a comfortable and secure life in retirement.

Pension planning begins with clearly defining your financial goals and then saving and investing money based on your needs and preferences. There are numerous factors to consider when planning your pension, which we will address later in this article.

To figure out a specific nest egg, consider your current income, expenses, assets, liabilities, life expectancy, inflation, tax benefits, and risk tolerance. Decide when you want to retire, how much income you will need, and what vehicles you will use to achieve the corpus required to live the life you want.

Why is pension planning important?

Now that you understand what pension planning is all about let us look into why it is such a trendy topic. Here are five reasons why pension planning is an inescapable part of your life:

1. Helps you achieve your life goals

Whether you want to travel the world, pursue a hobby, or spend time with your loved ones, retirement planning can help you fund your dreams.

• Have a steady source of income

By saving and investing your money wisely, you can create a retirement corpus that can generate regular returns and meet your expenses even when you are not working.

• Gear up for  unexpected emergencies

You never know what life may throw at you, such as health issues, natural disasters, or family crises. Pensions can help you cope with these situations without compromising your financial security.

• Reduce your tax liability

Effective pension planning reduces your tax liability and increases your net worth. You can grow your wealth by investing in multiple assets that can appreciate over time and help you save taxes.

• Gives you peace of mind and happiness

By using the right pension planning, you can avoid financial stress, maintain your lifestyle, and contribute to the economy and social welfare.

Factors to Consider While Planning for Retirement

1. Your retirement age and life expectancy

• Start by asking yourself two questions: When do you want to retire? How long do you expect to live? The age at which you retire is entirely up to you. Some people want to stay active and work into their later years. Some want to retire early and enjoy the aspects of life that they skipped out on due to their busy work lives.
• You can estimate your life expectancy based on your health, family history, and lifestyle and then save accordingly.

2. Effect of Inflation on Your Pension

Inflation is the rise in the average cost of goods and services over time. When inflation rises, it reduces the purchasing power of your money. So, to prevent inflation from eating up your retirement corpus, invest in assets that can generate returns higher than the inflation rate to preserve the value of your portfolio.

3. Don’t lose sight of tax liabilities

Remember this: Taxes will take a toll on your retirement corpus and pension. So, while retirement planning, keep an eye on your tax bracket, deductions, and exemptions. You should look for tax breaks and tax-efficient investments to lower your tax liability and increase your net worth.

4. Returns on Investment (ROI)

We invest to generate profits from our savings and investments. Furthermore, returns are determined by the risk you take and the time horizon of the asset classes you choose. To achieve your retirement goals, diversify your portfolio and devote yourself to long-term investments that balance risk and return. This will help you develop immunity to market fluctuations.

How to start pension planning?

Follow the steps below to start your pension planning right away-

Step 1: Select your retirement age

Your financial goals and responsibilities will influence the retirement age you set. You should consider your current health, life expectancy, lifestyle, and career goals. For instance, if you are career-oriented or have financial responsibilities, your retirement age will be higher than that of someone financially secure or satisfied with their career achievements.

Step 2: Set financial goals and form a budget.

You should calculate how much income you will require in retirement based on your estimated expenses, inflation, and tax rates. Keep your budget realistic, allowing you to save and invest a portion of your income regularly.

Step 3: Invest early for a peaceful retirement

Start as early as possible is the secret mantra to effective retirement planning. Compounding can help you boost your returns as time goes by. You should choose a retirement plan that suits your risk tolerance, time horizon, and financial goals.

Step 4: Compute your retirement corpus

Calculate how much money you’ll need to save by retiring to maintain your desired lifestyle. To calculate the future value of your savings, you can use a retirement calculator or consult a financial advisor. Because it is critical to consider your expected rate of return, inflation, and withdrawal frequency.

Step 6: Avoid avoidable expenses

You should reduce your debt, spend less, and avoid making unnecessary or impulsive purchases. To pay off your debts, use the descending order of interest. To put it another way, start repaying the loan with the highest interest rate first and work your way down to lower interest rates.

Step 7: Regularly review and track your plan

You should periodically review your retirement plan and make changes as needed. Don’t miss out on reviewing your insurance policies to ensure adequate health, life, and property coverage. You should also review your goals, budget, investments, and expenses to ensure they align with your changing needs and circumstances.

Best Investment Options For Retirement Planning

If you are covered by an old pension scheme and are eligible for a pension, you should still consider these investment options due to their high returns and tax-free status. If not, this list is exactly what you need.

Public Provident Fund (PPF)

• PPF is a government-backed savings scheme that offers a fixed and guaranteed return, currently at 7.1% p.a.

• Your money is locked in PPF for 15 years, and you can continue for 5-year blocks.

• Partial withdrawals and loans are allowed only after certain conditions are met.

• It is a safe and tax-free option but may not beat inflation in the long run.

National Pension Scheme (NPS)

• NPS is a market-linked pension scheme that allows you to invest in different asset classes, such as equity, debt, and government securities, through various pension fund managers.

• NPS offers two account options: Tier I and Tier II. Tier I account is mandatory and has a lock-in period till age 60, while Tier II account is optional and has no lock-in period.
• You can choose between active and auto choices for your asset allocation.

• You can also claim an additional tax deduction of Rs. 50,000 under Section 80CCD(1B) for your NPS contributions over and above the Rs. 1.5 lakh limit under Section 80C.

• Returns in NPS are based on market performance. But if you start early with a long-term investing vision, you can beat inflation and generate good returns. 

Mutual Funds

• Mutual funds are pooled investment vehicles that invest in various securities, such as stocks, bonds, gold, etc., depending on the fund’s objective and strategy.

• Contrary to stocks, where you manage your risk, Mutual funds are managed by professional fund managers and regulated by SEBI.

• Mutual Funds have various options to suit different risk profiles, time horizons, and goals. Depending on your investing tastes, you can choose different plans, such as growth, dividend, and systematic investment plans.

• You can invest in mutual funds through lump sum or SIP mode.

• You can also invest in ELSS (Equity Linked Savings Scheme) funds, which are tax-saving mutual funds with a lock-in period of 3 years and qualify for deduction under Section 80C.

• Mutual funds can offer higher returns than fixed-income options but are also subject to market fluctuations and taxation.

Equities or Shares

• Equity or shares are units of ownership in a company that entitle you to a proportionate share of its profits and assets.

• They are traded on stock exchanges and their prices are determined by the demand and supply forces.
• Shares can give you capital appreciation and dividends but are risky and volatile.

• Shares can yield attractive returns only when you research the company, avoid short-term gains, study its financial and technical ratios, competitive advantage, etc., before investing.

• You must also pay brokerage fees, transaction charges, and taxes on your share transactions.

Key Takeaways

• Pension planning is a pressing topic that we must address. Systematic planning can help you meet your retirement objectives and secure your financial future.
• Starting early, saving regularly, investing sensibly, and selecting the right pension plan will allow you to enjoy your golden years without financial worries.
• However, pension planning is an ongoing process that must be reviewed and tweaked regularly in response to changing economic conditions. You cannot afford to ignore other factors that influence retirement planning, such as taxes, inflation, and healthcare costs.

To summarise, if you are unsure about pension planning, never hesitate to seek professional advice. Remember, it is never too late to begin pension planning, but the sooner you do it, the better.

FAQs

Introduction

Importance of Knowing Retirement Age

The main goal of savings in most Indian households is a comfortable retirement, one of the most significant milestones in a person’s life. Yet, many people remain unaware of when exactly they are expected, or allowed, to retire. Understanding the retirement age in India gives you a clear picture of the time horizon for your investment strategies. It also helps in effective financial planning, securing pension benefits, and knowing your legal rights as an employee.

Overview of Retirement Policies in India

Unlike many nations with a uniform policy, retirement age in India varies depending on sector, employment type, and state-specific regulations. It typically ranges between 55 to 65 years, with adjustments made for specific professions or government roles.

Retirement is one of the biggest milestones in an individual’s life. But unlike other things, we never talk about the age at which one should retire. Most of us don’t know the ideal retirement age in India.

But first, we must understand what retirement exactly means. It is the age when a person stops working and becomes eligible for a pension or other benefits without working for money or, in other words, retirement benefits. Retirement age varies depending on the type of employment, sector, and country. In this blog, we will explore the retirement age in India for different categories of workers and the factors that influence it.

Standard Retirement Age in India

Government Employees

The government job retirement age in India for central government employees is generally 60 years, as prescribed under the Central Civil Services (Pension) Rules, 1972. However, several exceptions exist:

• Academics: As per the University Grants Commission (UGC) Regulations, 2018, the retirement age for professors, principals, and directors in centrally funded universities and institutions is 65 years.
• Scientists: In organizations like the Defence Research and Development Organisation (DRDO), the retirement age for scientific and technical staff is 60 years, but certain high-ranking roles allow extensions up to 64 years, based on performance and need, under the DRDO Recruitment Rules for Scientist B and above.
• Regulatory board members: For statutory and regulatory bodies such as SEBI, TRAI, or UPSC, the retirement age for chairpersons and members can go up to 65–70 years, as per the Department of Personnel and Training (DoPT) guidelines on Tenure, Terms, and Conditions of Appointment of Chairpersons/Members of Regulatory Bodies and Tribunals.

Private Sector Employees

The retirement age in India for private sector employees is more flexible and generally defined by company policy or individual contracts. It usually falls between 58 and 60 years but can vary depending on the industry and individual agreements.

Retirement Age In India

Unlike some countries with a uniform retirement age for all citizens, India has different retirement ages for different types of workers. The retirement age in India depends on the type of employment, sector, and state. Generally, the legal retirement age in India ranges from 55 to 65 years, with some exceptions.

New Retirement Age In India

In recent years, the retirement age in India has been changed for certain categories of employed professionals. The central government has increased the retirement age of some of its employees to address the shortage of skilled manpower and to retain experienced professionals. For example, in 2019, the retirement age of doctors working under the central health services was increased from 62 to 65 years. Similarly, in 2020, the retirement age of central armed police forces personnel was increased from 60 to 65 years.

High Court Judge Retirement Age in India

The retirement age of high court judges in India is determined by the Constitution of India. According to Article 217 of the Constitution, the retirement age of high court judges is 62 years. However, a high court judge can be appointed as a Supreme Court judge, in which case the retirement age is 65 years, per Article 124 of the Constitution.

Retirement age in India for Central Government employees

The Central Civil Services (Pension) Rules, 1972, fixed the retirement age in India for central government employees. According to these rules, the retirement age of central government employees is 60 years unless otherwise specified. However, there are some exceptions to this rule, such as:

• The retirement age for professors, principals, and directors of academic institutions under the central government is 65 years, per the University Grants Commission Regulations, 2018.
• The retirement age for scientists and technical officers of the Defence Research and Development Organisation (DRDO) is 60 years, with an option to extend up to 64 years, as per the DRDO Recruitment Rules for Scientist B (Direct Recruitment).
• The retirement age for chairpersons and members of statutory and regulatory bodies under the central government is 70 years, per the Department of Personnel and Training Guidelines on Tenure, Terms, and Conditions of Appointment of Chairpersons/Members of Regulatory Bodies and Tribunals.

Recent Changes and Discussions on Retirement Age

Proposed Increases

Over the last decade, the retirement age in multiple services has been changed. For instance, in June 2016, the Union Cabinet approved an increase in the retirement age for doctors under the Central Health Services from 62 to 65 years. 

A similar extension was seen in 2019 for the retirement age for personnel in the Central Armed Police Forces (CAPFs), including CRPF, BSF, ITBP, CISF, and SSB. The retirement age for all was standardized to 60 years from the previous cap of 57 years. 

As of 2025, many states in India have revised the retirement age for government employees. The Andhra Pradesh government increased the retirement age to 62 years (from the previous 60), while the Kerala government increased it to 60 years (from 58). Following this, the Central government has also had discussions around increasing the retirement age.  

Official Clarifications

Despite rumors, the government has confirmed that there is currently no proposal (as of March 2025) to increase the retirement age for most central government employees to 62. So, the current govt job retirement age in India remains at 60 unless stated otherwise.

Retirement Age for Specific Professions

Judiciary

Under Article 217 of the Constitution, High Court judges retire at 62, while Supreme Court judges retire at 65.

Armed Forces

The retirement age in India for Army personnel depends on rank and years of service. It can range from 35 years for junior personnel to 60 years for medical officers. Officers generally retire between 54 and 60 years of age, depending on their role.

Medical Professionals

Doctors in central health services now retire at 65, thanks to recent reforms. This move aims to combat the shortage of skilled professionals in the healthcare sector and illustrates how the new retirement age in India can evolve to meet national needs.

Factors Influencing Retirement Age

Life Expectancy

India’s life expectancy increased from 62.7 years to 67.7 years by 2022. With increasing life expectancy, there’s a growing conversation about extending the retirement age in India to allow people to contribute longer and secure their financial future.

Economic Considerations

India’s evolving economic landscape also affects retirement norms. The ability of pension systems and organizations to support longer retirements is a crucial factor when deciding what is the retirement age in India.

Workforce Demographics

As India hosts a young population alongside an aging workforce, policymakers must balance employment opportunities for youth while retaining experienced employees, influencing changes in retirement age in India.

Retirement Age in India Compared to Other Countries

Global Retirement Age Trends

Globally, retirement ages hover around 65 to 67 years in most developed countries. Comparatively, the retirement age in India remains relatively low in several sectors, prompting debates around raising it in line with global trends.

India’s Position in Global Context

India’s flexible retirement age structure accommodates diverse employment types but may need reforms to remain competitive globally. Aligning the retirement age in India with international practices could help improve workforce retention and social security outcomes.

Employees’ retirement age in India for the private sector

The retirement age in India for private sector employees is not fixed by law. Still, it depends on the contract of employment, the policies of the employer, and the mutual agreement between the employer and the employee. Generally, private sector employees’ retirement age in India is 58 or 60 years. Still, it can vary from 55 to 65 years, depending on the industry, the nature of work, and the performance of the employee.

Army Retirement Age in India

The retirement age in India for army personnel depends on the rank, the service, and the option of the individual. The retirement age in India for army personnel ranges from 35 to 60 years, with some exceptions. For example, the retirement age for:

• Sepoys, naiks, havildars, and equivalent ranks is 35 years or 17 years of service, whichever is earlier, as per the Indian Army website.
• Junior commissioned officers (JCOs) and equivalent ranks are 48 years or 28 years of service, whichever is earlier, as per the Indian Army website.
• Commissioned officers (COs) and equivalent ranks are 54 years or 30 years of service, whichever is earlier, per the Indian Army website.
• Army Medical Corps officers’ retirement age is 60 or 31 years of service, whichever is earlier, per the Indian Army website.
• Army dental corps officers’ retirement age is 60 or 30 years of service, whichever is earlier, per the Indian Army website.

Police Retirement Age in India

The retirement age in India for police personnel depends on the state, the rank, and the service. The retirement age in India for police personnel ranges from 55 to 62 years, with some exceptions. For example, the retirement age for:

• Constables, head constables, assistant sub-inspectors, sub-inspectors, and inspectors are 55 or 60 years old, depending on the state, as per the Police Reforms Bill Summary by PRS Legislative Research.
• Deputy superintendents of police, assistant commissioners of police, and equivalent ranks are 58 or 60 years, depending on the state, as per the Police Reforms Bill Summary by PRS Legislative Research.
• Superintendents of police, deputy commissioners of police, and equivalent ranks is 60 years, as per the Police Reforms Bill Summary by PRS Legislative Research.
• Additional directors general of police, directors general of police, and equivalent ranks is 62 years, per the Police Reforms Bill Summary by PRS Legislative Research.

Will the retirement age be increased to 62?

There have been some speculations and rumors that the central government may increase the retirement age of central government employees from 60 to 62 years. However, there has been no official confirmation or announcement from the government. The government has clarified that there is no proposal to change the retirement age of central government employees. Therefore, the retirement age of central government employees remains 60 years unless otherwise specified.

Conclusion

Retirement age in India is a complex and dynamic topic, as it varies depending on the type of employment, sector, and state. Retirement age in India is influenced by various factors, such as the availability of skilled manpower, the demand for experienced professionals, the financial implications, and the social and economic conditions. Retirement age in India may change in the future, as the government and employers may revise their policies and practices to suit the changing needs and expectations of the workforce and society.

Recap of Key Points

The retirement age in India is not uniform—it varies across sectors and roles. While the standard age for government employees is 60, it can go up to 65 or 70 in special roles. In the private sector, it is usually around 58–60, based on employment contracts.

Future Outlook on Retirement Policies in India

Given longer life spans and a shifting economy, the retirement age in India may be revised further. The goal will be to ensure social security, retain expertise, and manage generational employment transitions effectively.

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Dreaming of long vacations, relaxed mornings, and doing all those things you always wanted to do? Early retirement might sound like a distant dream, but guess what? It’s closer than you think. There’s no magic involved. All it takes is smart planning, disciplined savings, investments, and healthy living. 

Can India Bridge the Retirement Investment Gap?

The retirement-age population in India is expected to rise by 41% by 2031; however, only 32% have opted for retirement-catered solutions. According to a study by ICICI Prudential Life Insurance study titled ‘Is India prepared for retirement: 

• 65% want annuity products, but only 11% actively saving.
• Maintaining a current lifestyle in retirement is a top priority for 83%.
• Bright spot: A new generation starts planning early at 40, saving 17% of income.
• Retirement goals include travel, staying connected, and financial security.

What does retiring early mean?

It doesn’t mean you stop working. It means your savings have reached such a stage that you can live through the returns you generate. That is true financial independence. It means your investments generate enough returns to live your life and meet your wants and needs, so you do not have to work for money. 

1. Figure Out Your Retirement Number

Before diving into investment strategies, figure out the amount you need to live comfortably post-retirement. Consider your current expenses, inflation, healthcare costs, and desired lifestyle. A simple rule of thumb suggests 70-80% of your pre-retirement income.

If you plan to retire at 45 and are currently 30, you have 15 years to build up a fund that will cover your living expenses for 30-35 years after your early retirement. To make this possible, you’ll need to save an amount that is 30 times your annual expenditure. The question is, how can you achieve this?

Once you reach 30, you should aim to save almost 70 percent of your total earnings every year. It means you must save more than twice the amount you spend annually. By following this approach, you can save for two years with every passing year while keeping a 10 percent margin for inflation, contingencies, and other uncertainties.

So, if your annual expense is ₹10 lakh. Then you must be earning ₹32 lakh (after tax) so that you can 70 percent of it to be able to save ₹22 lakh, which is nearly 10 percent more than the two-year expenses:

(10X2) + (10% X 20) = 20 + 2 = ₹22 lakh.

The remaining 30 percent of 32 lakh is ₹9.6 lakh or nearly ₹10 lakh — which you can spend.

If you maintain the current saving rate over the next 15 years, you can create a portfolio that will last more than double the number of years you saved, which is 30 years. As you progress in your career, your income will likely increase, and you can save faster than before. This additional income can be used to cover unexpected expenses.

Retirement at 45 may sound a little surprising, but it is possible to do so. Remember, it is a slow process that can’t be achieved overnight. It needs planning. 

2. Start Saving Early, Watch it Grow

The earlier you start, the easier it gets. Compound interest works wonders over time. Save at least 15-20% of your income monthly. Diversify your savings across multiple instruments like PPF, EPF, NPS, mutual funds, and stocks. Utilize platforms like SIPs (Systematic Investment Plans) for disciplined investing. You can also use our SIP calculator for more details.

Now, saving Rs. 10,000 per month through SIPs in diversified equity funds with an 8% average return could potentially reach Rs. 2.4 crore in 30 years. If you intend to live a retired life for 30 years, saving 70% of your income for at least 15 years is recommended. This will ensure you have sufficient funds to cover your expenses in the long run. The remaining 30% of your income can cover your current expenses. Remember, this is just an estimate, and actual returns may vary.

3. Debt Free = Stress Free

High-interest loans can eat up your retirement savings. So, focus on clearing debts before putting too much into investments. Try to explore ways to combine loans or get lower interest rates. Remember, a stress-free mind is vital to a happy retirement.

4. Add To Your Skills and Look for a Side Income

Multiple income sources are like a safety net and can boost your retirement savings. Explore your skills and find a side business you enjoy – freelancing, online businesses, consulting, or even teaching. Every bit adds up and provides financial security. Remember, a side hustle is not your chief source of income.

5. Create a Realistic Budget and Stick to it

Track where your money goes, spot extra expenses, and cut back on unnecessary, fancy stuff. Every rupee saved today brings you closer to your retirement goals. Remember, a budget can help you reach your goals faster.

6. Seek Professional Guidance

A qualified financial advisor can help you build a personalized retirement plan based on your risk appetite and goals. Their expertise can save you time and money in the long run.

7. Don’t Forget Healthcare

Healthcare costs in India are rising faster than inflation. Studies show they’ve increased by around 15% annually in recent years. That means a treatment costing Rs. 10,000 today could cost Rs. 26,533 in just 10 years! According to a Max Bupa Health Insurance survey, 75% of senior citizens in India spend over Rs. 15,000 annually on Healthcare. Remember, investing in a good health insurance plan early on is a wise thing to do. 

Think of retirement planning as a lifelong journey. Stay healthy and active—it’s good for you and saves money on Healthcare later. Enjoy the process, adjust plans as needed, and get advice from financial experts. That way, you can retire confidently and enjoy the freedom it brings.

After creating a substantial fortune in 15 years, you can start withdrawing 3 percent of it each year, while the remaining portion of the fund can be kept invested. It will allow the fund to grow exponentially over the next 30 years, ensuring that the fund never runs out of money during its lifetime.

 

A smooth sailing retirement is a dream we all share. You finally get to settle into this period, having retired from all your responsibilities to enjoy your golden years with much-needed peace of mind.

It is possible only if you’ve planned for your retirement and made systematic investments over the years leading up to it. Retirement planning aims to build a corpus that lets you continue living the way you always have while having enough money to pay for unforeseen expenses and even fulfil some of your post-retirement life goals. But, of course, all of this is made possible with wise investing.

The Best Approach to Retirement Planning in India

Retirement planning for many fails because they start the process too late in life. Ideally, you should start your retirement planning process from the day you receive your first paycheck. 

Another reason why many Indians do not have enough savings in their sunset years is that they’ve either invested too little or not in the sound financial assets that will deliver returns in the long run. Many cannot save or invest only with an idea to safeguard their savings. Traditional assets may protect your savings but will not help your money grow. 

You must clearly understand that the objective of retirement planning in India is to have an adequate corpus that will allow you to sustain the same lifestyle you have now, considering inflation in the future. Therefore, making an early start is your best bet to prepare for your sunset years. 

Step by Step Guide to Planning Your Retirement

Look at our 7-step guide to your retirement planning in India.

Step 1: Decide When You Want to Retire

The most common retirement age in India is 60 years, but it may vary depending on the individual, company, and industry. Besides the legal retirement age, there is also the concept of voluntary retirement, wherein you can voluntarily retire before you reach your designated retirement age at the company where you work. 

Deciding at what age you wish to retire is the first concrete step toward your retirement planning. It is crucial because the steady inflow of income will cease when you opt for retirement. Not, In addition, notryone is eligible for a pension, so you must have enough savings and investments to take care of your life post-retirement for you and your family. 

Step 2: Create a Contingency Fund

Don’t let unexpected expenses derail your savings or empty your pocket! As they say, precaution is better than a cure, so planning for unplanned medical emergencies is more manageable than scrambling for money when the event occurs.

But, on the other hand, such sudden events could empty your savings and ruin your financial plans. So, it is a good idea to have funds devoted to such contingencies, which may or may not occur.

Step 3: Don’t forget, Start Retirement Planning Early

For most Indians, retirement planning is something they do when they’re almost at the end of their career. The approach should be exactly the opposite. 

You must invest ample time in your retirement planning in India. It should begin the day you start generating income. The earlier you start, the greater the opportunity to compound your wealth. It will help you create the corpus of funds needed to live your life comfortably after retirement.

The following table depicts how important it is to start early Investment Amount: INR 1, 00,000 yearly estimated @ 10% p.a. return. 

Starting age	25	35	45
Retirement Age	60	60	60
Years to Retire	35	25	15
Total investment	35,00, 000	25,00, 000	15,00,000
Retirement corpus	2,71,02,437	98,34,705	31,77,248

Step 4: Decide How Much Money You Need To Live Comfortably After Retirement

The rule in retirement planning is to smartly calculate the corpus you would need to ensure that your retirement years are smooth sailing. You first must set a target, keeping specific calculations and estimations in mind. 

Key factors you must consider are your expected age of retirement, your probable life expectancy, an average of your monthly expenses, healthcare, and a possible inflation rate. Remember, you must also account for the rate of return on expected investment pre-and post-retirement. All these parameters are essential when you define the figure for your retirement corpus. 

Step 5: Spread Your Asset Allocations Invest In Equity Too

It is common for people to invest in a single asset class when they are retirement planning in India. It could be fixed deposits, public provident funds, bonds, or equities. Investing in one asset class is a mistake when it means securing your financial future. The goal should be spreading your funds across several asset classes that offer varying returns. 

The idea is to build an investment portfolio with conservative assets such as fixed deposits that build the foundation for wealth creation and minimize risk. Don’t forget to include a robust healthcare plan to insure against existing conditions. Also, consider adding a critical illness that can cover you against any terminal diseases in the future. 

While doing all this, ensure you also invest in the right stocks for the long term and mutual funds that allow your funds to compound faster by offering higher returns. Invest according to your risk appetite and consider the number of years that you have to achieve your future life goals. 

Step 6: Track and Review your Plan Periodically

Ideally, you should have a schedule to track your investment asset performance across the board on a half-yearly, at the most, on an annual basis. Anything over that timeline is not acceptable. 

This periodic monitoring of your corpus is integral to the retirement planning process. It allows you to check what you have saved during that period and, in the future, is your plan suitable to help you meet your goals. If not, you can incorporate any changes in income, expenses, retirement age and fluctuations in the market into your retirement plan.  

Step 7: Avoid Breaking Your Retirement Corpus

One of the most important things you can do is avoid using funds from the retirement corpus. For instance, if you switch jobs, do not withdraw your PF balance; instead, transfer the balance to your next employer’s PF account. Moreover, every time you withdraw your PF, you save that much less, and your retirement corpus decreases too. You will also have to pay taxes if you remove your PF amount before 5 years.

The Bottom Line

Retirement planning in India you save enough to gift yourself a stress-free and financially stable retirement. Moreover, you get peace of mind knowing that you have a solid corpus readily accessible to manage your financial expenses satisfactorily in your golden years.