Plan your retirement well in time

  • Posted By : reliancesmartmoney.com
  • Friday Nov 30, 2018

When it comes to retirement planning your retirement, the earlier you start, the better it is. However, in your 20's when you’ve just started to earn enough to fund your lifestyle, it seems almost unrealistic to set aside money for your retirement. You’ve only just begun earning, so you’re probably not going to be thinking of your last earning years.
However, as you get older and head into your 30s and 40s, you’re more likely to have stable finances. This seems more like a reasonably early age to start planning for your retirement.

Benefits of Early Retirement Plan

Reap the following financial, personal to psychological benefits that come with an early planned retirement:

1. Peaceful Retirement 

2. Don't Rely Solely on your Provident Fund 

3. Power of Compounding 

4. Tax Benefits 

5. Learn to Invest

Helps you retire in peace 

The lack of a planned retirement could leave a cloud of uncertainty around the issue and could create unnecessary stress. Planning your retirement well in advance, not only reduces the stress during your retirement years but also in the years leading up to it. Invest for early retirement and reduce the pressure of working in your old age. 

You don’t have to rely solely on your provident fund

The life expectancy rate is gradually going up. This means your retirement could last for a good 20 to 30 years. In addition to supporting yourself for that long, you might also have to bear the cost of healthcare that comes with old age. Depending solely on your provident fund might not be enough. Choose from the many retirement investment options now and reap its benefits in your later years when you most need it. 

You gain from the power of compounding 

Early investments always gain better from the power of compounding. With compounding, you stand to gain earnings on your earnings in the past, in addition to the principal amount. When you invest in a systematic investment plan in equity mutual fund, PPF or NPS at an early stage, it helps you accumulate a large corpus just by the power of compounding. By investing smaller amounts early in life, you stand a chance to achieve a better corpus until your retirement. 

Tax benefits

Invest in retirement options that could profit you right now through tax deductions. Many investment options like Equity Linked Savings Scheme (ELSS) and National Pension System (NPS) come with tax benefits under Section 80C and Section 80CCD of the Income Tax Act. This gives you the dual advantage of saving for your future retirement and gaining tax benefits too.  

Learn to invest 

Acing the game of investments is no easy task. With experience, you will be able to gauge where to invest your money. Starting to plan your retirement early gives you ample time. You can compare your investments with tax saver tools available online. Tools like RoboAssist  help you choose the right investment to cater to your future goals. Make use of these tools to invest better, plan your retirement, and save tax and to plan your retirement early. 


The bottom line here is that planning for your retirement early in life could be your ticket to a financially secure and independent retirement. Check reliancesmartmoney.com to find the right retirement plans for you. 

 

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