Today, as more and more women are becoming financially independent, they give serious thought to retirement planning. Read on to know how you, as a woman, can plan your retirement well.
If you are a young working woman, retirement planning is probably the last thing on your mind. However, it would help if you gave it a serious thought as it takes a considerable amount of time to build a robust retirement corpus and meticulous planning. Also, it is a proven fact that women need more savings than men because of various factors, and the most important being payment inequality. If you are still nonchalant about retirement planning, it would be advisable to rethink and give it a serious thought.
As retail inflation and medical inflation are constantly rising, you would need a considerable amount of savings to meet your expenses post-retirement. But how do you build the savings? Do you just put aside your surplus money in the bank, or would you rather invest the money in various investment products so that you allow your savings to grow and get inflation-adjusted returns? This is where retirement planning comes into the picture. Retirement planning is a way to increase your savings and build a corpus for the future you can use after retirement from active work life and have reduced or no income.
The following tips will help you plan your retirement:
- No matter if you are a salaried employee or own a business owner, it is better to start planning for your retirement from an early age. It is even more critical if you are unsure when you may have to take a backseat from your career due to family obligations or any other reason. Also, the desire for work-life balance should not affect your willingness to have for your retirement.
- While it is pivotal in various market-linked assets to build a corpus for the future, your retirement planning will be incomplete and ineffective without a medical insurance policy. In the purview of the rising medical inflation and the growing risk of lifestyle-related diseases, you must purchase a robust health cover to get protection against medical emergencies. This will also help you get quality medical care without touching your savings.
- Living a financially independent life post-retirement is one of the most important driving factors for retirement planning. However, as you plan for your future, you must not forget about the dependent family members. You should have enough financial reserves to support any emergency. For example, if any of your family members is diagnosed with a critical illness, you must consider the additional expenses that may arise due to hospitalisation or prolonged medical care.
- While you invest in different products and plan your savings, it is advisable that you also take your time to learn the basics of finance. The key to efficient retirement planning is tax planning. The taxes take a considerable amount of your liquid money that you can otherwise spend on lifestyle purchases or increase your investment. Make sure that you are aware of the various tax benefit provisions and use it to your advantage. As they say, a penny saved is a penny earned.’ The more money you save from the taxman, the more money you have.
- Lastly, before you invest your hard-earned money in any investment tool, it is paramount that you have a fixed goal in mind. It would help calculate the exact corpus you wish to create, keeping in mind your future expenses. This will not only help you determine the amount you must save but also you can be more prudent with your investment choices.