Every Individual knows that one day he won’t be able to earn as much as he is earning today so he starts saving for the future and planning for Retirement. He starts investing in one Retirement Plan or the other and this is how it should be. It is a known fact that opting for a Retirement Policy is one of the Best things an individual can do to safeguard his future.
And while enrolling for a Retirement Policy, the First Thing that we should be aware of is – How much do we need Post Retirement. This is something which varies from Person to Person and you yourself are in the best position to estimate this for yourself. However, while estimating this for yourself, please keep in mind the following points: –
1. At what age would you like to Retire?
This is one of the most important criteria as the early you require, the more funds you would be requiring, and the later you require, the lesser funds would be required. This is because you have to spend more years without your Salary.
2. Would you completely Retire
Is it that you intent to retire completely or you intent to take some part time job post Retirement? A job post retirement would ensure that some money keeps coming in your pocket through the job
3. Other Incomes
Do you have other incomes as well like Rents, Dividends, Interests etc. This also add up to your household income
What sort of lifestyle do you like to endorse. Plan your Retirement Policy based on the Lifestyle you want to enjoy post Retirement
5. Future value of Money
We all know that value of money keeps decreasing overtime. 1 million may be a huge amount today but 20 years down the lane, it may be a meagre amount. So better plan accordingly.