Retirement Planning

 





 

1 Do the math.

 

Compute how much you will need after retirement, taking into account living expenses, medical expenses and inflation.

2 Start now.

 

Begin to save for retirement at an early age and allow the magic of compounding to work its wonders. To begin with, make a habit of saving at least 10% of your income for retirement.

3 As your income increases, increase your contribution towards retirement. Gradually, as a rule of thumb, you should be saving 40-50% of your income when you hit the peak of your earnings.

4 Make a household budget and a saving plan and stick to it.Establish an automatic investment plan.

5 Don't withdraw from the retirement corpus before retirement.This will hamper the compounding and amount to a serious shortfall at retirement.

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