Retirement Guide-How to retire with Pension: Age wise guide.
Now think. How sure are you that your pocket is full for the whole three decades when you don't have income? Very simple answer is to Plan Effectively and immediately.
Decided to plan? Now ask yourself how?and how much? when? and till when?. It all varies and depends on how far you have run through your life(i.e. Your age)
So to Make it easier, we had got this very easy guide to ensure that you Retire Rich.
›› Retirement Guide-Age in Twenties (20-29)
To do things:
Clear All your debts and EMI's
Start saving immediately. Open a individual Savings account
Save your surplus whenever available
In your Twenties you might be still studying probably till 23 to 25. You will be having your first job with regular salary. Your retirement will not be there in the near future. So you can give little lesser importance to retirement now. It is quite acceptable to have other financial commitments on first priority at this age.
You have to look at closing your education loans, personal loans, car loans and credit card dues. It is advisable to be debt free before your thirties. But still you have to consider saving something. Even a single rupee savings is better than to have zero savings. To start building for pension at this early age will give you a very big retirement fund for sure in your later years.
One of the best way to save is to open up an Recurring deposit or SIP Mutual Funds. You might even start an personal savings account and start saving regularly in it.
›› Retirement Guide-Age in Thirties(30-39)
To do things:
Evaluate your current Debts and Monthly commitments on it.
Open up an PPF( Public Provident Fund) account
Think only long-term with your investments.
Now you're in your 30s. This is the most busy time in your life. Some of you may be getting married or may be starting new family or may be starting child education and may be building your new house or even all the above said three together.
You should be very balanced in both paying of your debts and at the same time saving for your future. You should be clearing off all your unsecured debts( Credit cards and personal loans) at the earliest.
You are in thirties and therefore have a decent amount of years left in future to increase your savings. You can prefer risky investments life shares and mutual funds now because these two investments give more returns than any other investments.
›› Retirement Guide-Age in Fourties( 40-49)
To do things:
Start saving for your pension immediately if not started already!
Keep building your savings account balance
You are at the peak earning years - Contribute more to your pension savings.
Now you should have already started your retirement savings. If not you should act immediately and start for your pension immediately without making any delays. Its already late but not too late. It will require just a little extra effort to increase your retirement savings.
Make the most of increments, incentives and bonuses to boost your retirement savings, rather than simply increasing your expenses every time.you have to take your retirement planning seriously, and that means planning your target retirement age and understanding what is your retirement. You might not be able to paint an accurate picture of your retirement just yet, but you should be thinking about it lifestyle.
The least you should have is an PPF account. Keep contributing to this over the years and try to build up your tax-free savings.
›› Retirement Guide-Age in Fifties( 50-59)
To do things:
Decide Retirement Age
Contribute Contribute Contribute
Remove market risk from your pension investment Funds
We had reached the most serious part of your life. Here in this age category, we are about to reach our retirement age. All the savings done in the past for our retirement age will give you a lump-sum amount available to plan your pension. You have to decide on what date you want to retire. This might not be more decisive but may give you a good clarity on your retirement. Then evaluate what type of income you need.
And then Evaluate your pension savings and where it's invested. You have to reduce the equity exposure for your pension funds. And make sure that the market volatility doesn't affect your savings.
Withdraw all the money from shares and invest in safer debt instruments. Maximize your savings to create a good healthy pension amount.
›› Retirement Guide-Age above Sixties( 60+)
Decide on whether you'll buy an annuity immediately or can wait for few more years
Do Not take any Risky investment path
You are almost at the retired point or to be retired soon point. Here in this decade you are about to take the most important decision of your life. All that you saved in the last three decades are to be used for you rest of your life. You had done the right things at right time to create a good corpus for your retirement. Now you are going to decide on how you are going to use this amount to give you the income required for your rest of your life.
This is the last decision you are going to take for your future life. So think wiser before deciding. Decide on to buying annuities. Annuity is the best guaranteed option to give your regular income for the rest of your life time.
You can find the list of Immediate Annuity plans in the below Link.
By the way, you may come across many lucrative, attractive more fancy investments schemes that may provide you with more than 15% returns. You have to ask to yourself the following questions to be sure that your retirement life is secured.
- Is the income Guaranteed?
- How long is the Income Guaranteed?
- Will it be there in writing about this Income Guarantees?
- Is the returns projected or committed practically possible?
These Questions will keep you out of the scammers and unscrupulous people who aim at pushing you into their net. Dont ever give your ears to the illogical and unrealistic returns promised by many scammers.
It is your hard earned money from the past 3 or 4 decades. You have to be so careful in planning the income from the pension fund you have. The safe and best option is to go for an Immediate Annuity plan. Waytoinsurance.com also suggests you to buy an Immediate Annuity plan for the safer retirement Life.