Introduction to Retirement Planning

What is Retirement Planning?

It is a continuous process.

It is the process of ensuring sufficient financial resources to the retired person so that he/she can enjoy the desired lifestyle during the retirement years.

Retirement planning is the thought and commitment that you put into providing for income and a satisfactory lifestyle for your later years after you leave the work force.

Many of the times it has been observed that when people retire their income reduces that leads to panic in his personal life because reducing life standard is simply painful. Here is an answer to the problem which is retirement planning.

Retirement planning never says that you will be rich if you plan from today. Normally that is a misconception of the process. Rather this process says that you will be able to maintain the life standard even beyond the retirement years. and that should be objective the planner.

There can be n number of understanding on the retirement planning. Here I have expressed my views on that.

Lets now understand why retirement planning is required at all?

1. With increase in the medical facilities the life expectancy of an individual is also increasing hence retirement planning is critical
2. Inflation has remained as an enemy from years and its expected to remain the same
3. More and more nuclear families are getting formed now a days that is also one of the reason
4. Lack of social security
5. No assured pension plans offered by the employers so after retirement a retired person will have to live on what he has accumulated throughout the life

These are some of the reasons why retirement planning has become a need of the day!

 

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