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Aug 04, 2011, 04.01 PM IST | Source: Moneycontrol.com

Retirement planning

RETIREMENT need not be only about gardening and reading. If planned for, it can be the best stage of your life, without children that need attention and loans that need paying.

Retirement planning
RETIREMENT need not be only about gardening and reading. If planned for, it can be the best stage of your life, without children that need attention and loans that need paying.

We offers some pointers on how to plan your retirement.

To plan your retirement, you need~ Time
Start early. Use the power of compounding that can make even a small amount add up to a substantial one. Start channelling a small amount of your investments to a suitable pension option.

~ Commitment
This needs discipline. No matter what your expenses, there should be a regular outflow towards your goal till you retire. This is often easier said than done because your immediate needs may seem stronger than a future requirement.

~ Adjustment
Prices will rise by the time you retire and continue rising post your retirement. Account for inflation because it will affect you as long as live. Your standard of living might change. In fact, it would have
constituted a major increase in your expenditure pattern rather than inflation, over the last few years.

Use our cost of living tool to see how inflation will affect your post retirement costs.

~ Detailing
When accounting for base expenses for your retirement, don't forget to include all expenses currently being reimbursed by your company. Medical or travelling expenses may not pinch you right now, but they will at a later stage, since you will bear them yourself post retirement.

Use our Retirement Planner to calculate how much you would need after you retire and how to save up for it.

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