How to plan for a Retirement?

the habit of saving & investing money @ early stage of your life will lead to a happy n secure life after retirement.

as the management guru Warren buffet  strongly advocates small yet regular investment to reap benefits in future, as he himself bought his first share at the age 11 & kept his lifestyle as simple as he can.

I feel if one can plan in early in terms of his financial status, then he can set a standard life for his retirement. This would require a frequent check of his portfolio to form a quality one by the time of maturity.... Thank you, Manish N

Cheers!!

Thanks Rashmi to enlighten such a well discussed topic. I prefer to choose retirement kitty bcoz as per my experience and frequently discussions with my clients they ever wondering about those scenario when they approaches their 60s. The cost of living and monthly sustainable income in the most important factor. We should also cover physical state an3d regular medical  or  emergency expenses related to health or family survival. Bcoz we can't forecast the future threats. So first calculate major and minor expenses (recurring & major). The returns from different investment plans are hypothetical, and as per my advice we should not fully rely upon such illustrations. Major fund should be keeping aside (atleast 10 Yrs of Retirement Life) Rest should be planned according to your risk taking appetite. As per my calculation including inflation and primary household expenses one should also start early savings. and try to avoid capital loss during financial planning.

Whole IDEA of retirement is out of fear of reserves, our standard of living, our tiring job requirements & lack of future abilities as per our skill sets.

One should enjoy the basic creature comforts of life from moment to moment, without much worries of future, otherwise momemts of life fly unnoticed without enjoyment & only planning. This does'nt mean do not planfor future. Try to enjoy within means the earnings at least 50% of it today, because, future may require more than this money to enjoy the same, thanks to rise in all prizes.

To explain my point of view, a tasty, home made food or hyginic food at a small joint can give you the same pleasure as that of a high graded cool ambiance with same food, which may cost more if not your fortune. Try to keep an eye on this. Have once in a while outing with loved once to boost image-not a problem. Whole IDEA should be talk to yourself sincirely, rationally & have some limitations to yourself & make a compulsary SAFE savings, even if the returns are low. This habit takes you along way & "Retyre" your wearing future worries.

Blessed are we who talk on this subject, many may not even have the present resources to make their ends meet.

What I feel from my experience is people start thinking about the retirement at the later stage of their career ignoring the importance of it along with Insurance and other component of financial planning.

Any financial planning canot be completed without the Retirement planning other than Insurance, health , investment planning for their futute....I think the best time to start doing the financial planning is when anyone start earning and make appropriate investment in each piece of kitty...

There are many companies in the market having different kind of product in the name of retirement solutions but I strongly feel all are just sitting to earn the profit...If anyone has is seriously looking for retirement planning then go for EPF , PPF and NPS which is more than enough...

We should select the right retirement plan enabling us to meet our post-retirement requirements. Preferably, its better to invest in market-linked plans, which can provide potentially higher returns in the long run. But we should start doing it as early as possible.

every person has to consider his/her future.   in case of job, there must be awareness for  his/her  future.     not to consider only  tax planning. 

Well as the person grows in his life, his standard of living grows, his expenses grows. However, at one point of time, his earning capacity become zero which is from 55 to 60 yrs, when a person choose to retire.

While planning for retirement, the person should consider the inflation rate which is nearly to 10%. Rs. 1 lacs of today would be Rs. 10000 in next 20 yrs. So, one should accordingly decide what is the ideal amount he would require at the time of retirement and accordingly invest.

Also, the person should start to think from the very first day of his or her earning to invest for his future goals.

A PERSON SHOULD START HIS RETIREMENT PLANNING FROM THE FIRST DAY.

HE SHOULD DETERMINE HIS FINANCIAL NEEDS ACCORDING TO THE STD. OF LIVING HE WANTS TO LIVE.

THEN, HE SHOULD USE INFLATION FACTOR ON SUCH DETERMINED AMOUNT.

THEN HE SHOULD FIND THE AMOUNT HE NEEDS TO INVEST TO REACH SUCH GOAL BY USING PRINCIPLES OF ANNUITY. IN THIS PROCESS, HE SHOULD ALSO CONSIDER PLANNING HIS CURRENT EXPENDITURES.

TO MAXIMISE PROFITS WITH COMPARATIVELY LOWER RISK, ONE SHOULD DIVERSIFY HIS INVESTMENTS BY ALLOCATING FUNDS IN BOTH UNIT LINKED AND UN-LINKED INVESTMENTS.

IN ORDER TO ENSURE THAT SUCH INVESTMENTS ARE NOT EATEN UP DUE TO SOME UNFORTUNATE REASONS, ONE SHOULD HAVE ENOUGH HEALTH AND ACCIDENT INSURANCE POLICIES.

HOWEVER A LIFE NSURANCE IS NOT IMPORTANT FROM THE POINT OF VIEW OF RETIREMENT PLANNING SINCE IN CASE OF DEATH RETIREMENT PLAN IS NOT AFFECTED, RATHER THE INVESTMENTS ARE ENJOYED BY THE LEGAL HEIRS.

Retirement is not just about how much money a person needs for living or medical when there is no standard income. It is also to do with what we can give to the society around us. It is a valuable time a person gets to leave a footprint on this earth in their last league.

India is a country with lot of bondings are relationships. We learn how to lead life from from parents and grandparents. Our brain matures within these boundaries of love and affection. Lucky, we are smart enough to start looking of how we need to lead our life from these relationships and lessons learnt.

I know, I am taking the discussion away from finance topic, yet I thought this wonderful question can also have this point to open for debate.