Retirement planning: Invest now for a better tomorrow

The very term ‘retirement planning’ is both daunting and comforting at the same time. Daunting because it includes planning, calculation and strategizing investments. However, it also sounds comforting since it conjures up images of a relaxing morning, a cosy afternoon nap or, for some people, an extended vacation time. To be able to bring those pictures to life, you must plan prudentially. According to experts, retirement planning should ideally begin from the moment one starts earning. Even though it sounds nearly impossible, sound planning and smart investments can be a sure shot way to build a comfortable nest before you hit the ripe age.

There are many factors that have to be taken into consideration when you start planning for your retirement. 

1. Goals: Before you start strategizing, you should set a clear goal as to how much you would ideally need to save so that you are able to continue with the same level of lifestyle that you are enjoying at present. You should set short term and long-term goals which will give you an estimate of your financial resources and also provide an idea of the amount of future investment required.
2. Identification and segregation: Draw up a thorough estimate of your expenses, segregating necessities and luxuries and identifying areas which might incur more expense later on. You should also take into consideration the possibility of inflation. 
3. Financial assessment: Assess your financial status given your age and plan accordingly. For instance, the retirement planning for someone in their mid-30s will be different from someone in their mid-40s. There will be a host of factors tied to your retirement planning which might not be there in someone else’s. A married person needs to also take into consideration their spouse and children.
4. Strategizing: Finally, identify the amount of money you will need to save and assess how much of it will come from your income and how much of it needs to come from other sources. 
5. Identifying resources: This step involves looking for investment options which promise a handsome return on your investment. Life insurance is one option. Investing in stock market bonds

Retirement planning is a crucial component of life, and the sooner you start planning for it, the better. There are so many reasons why you should seriously think about retirement planning from an early age.

• You will be able to better organize your financial assets and invest smartly so that you have a comfortable savings option to fall back on.
• If you start saving from an early age, you can plan an early retirement and enjoy a relaxed lifestyle.
• Smart retirement planning means that you will be able to meet the needs of your family and even spend quality time with them.
• Moreover, a comfortable pension scheme will enable you to plan all those vacations that you could not take when you were working.

Life keeps changing. By the time you reach the other side of 40, you will have added responsibilities. There will be new expenses, newer things to acquire and many other commitments to fulfill. No one knows what the future has in store. Hence, it is always better to plan those parts of our life which we have control over so that we can enjoy a relaxed life with our loved ones afterwards.