Got a Hike in Salary? Here is Why You Should Start Planning for Your Retirement

Got a Hike in Salary? Here is Why You Should Start Planning for Your Retirement

When you start working, you have a regular source of income that helps you satisfy your present needs. Buying home appliances, going for a vacation, and plan your child’s education, all of this depends on your income. Getting a hike in your income can make you feel satisfying, that it is adequate to serve your present needs. You take this money to take care of your short term and immediate lifetime goals.

What about your long-term goals? How important are they to you?

However, amidst fulfilling all these short-term goals, people often forget to prioritize retirement planning in India, which is a significant long-term goal in everyone’s life. They think they still have a lot of time to start planning and saving for their retirement age. Though this is not the case.  Around 30 percent of people in India put aside money to support their retirement life.

When it comes to retirement, it’s never too soon to start planning and saving. With smart financial planning, you won’t need to brace yourself for financial struggles ahead. If you are still hesitant, then look at these reasons why you should start planning your retirement right away:

1. Provides You an Income Security

It is crucial that you have a fixed source of stable income after you are retired. Also, you would like to reap your investments at this stage of your life. It would help if you invest in a retirement plan that will help you enjoy the luxuries of golden years of life. You can even choose a monthly income plan that includes monthly payouts. The staggered payouts can help you with the essential things so that your family doesn’t have to worry about them consistently. You will, therefore, be able to manage your expenses and have income security.

Thinking further, you can also invest your money in a short-term plan such as Fixed Deposit or Recurring Deposit when you get a hike at an early age to make your money work hard for you.

2. Let you Worry Less About Health Expenses

The world in which we live is full of uncertainty. One of the main concerns you must think about is saving money for medical emergencies in your old age. Saving and investing, after all, is all about protecting yourself and your family from any crisis that might affect them. Adequate health insurance is the safest way to cover yourself and your loved ones.

So, you should start retirement planning in India by buying comprehensive health insurance. In this way, you can safeguard yourself and your family from the rising costs of medicinal services, especially in the case of medical emergencies.

3. Financial Independence

You must have imagined your post-retirement life sipping cocktails on a porch, relaxing on a cozy mountain delight or off to explore the world. After all, just like there’s always happily after in every movie, it’s all going to sort out at the end, right? It’s not the real deal, though.

If you do not have sufficient early-age investment, you will not be able to enjoy your post-retirement life and you will have to rely on other people. Here’s why from the day you start earning, you should invest in retirement plans like a monthly income scheme to get financial independence post your retirement. With the aid of payouts from such schemes, you can stay wherever you want, go for a holiday or spend further without being much dependent on anyone.

4. Legacy for Your Loved one

Most of the retirement plans in India provide you with measurable financial benefits to leave your family members with a legacy. You can either leave your family members with the lump sum money or benefit from regular monthly returns to meet their monthly needs.

Also, instruments such as term plan insurance offer death benefits, so your nominee will receive a lump sum in the event of any mishap or demise, and the policy benefits will continue as before.

Investing in financial instruments when you have adequate money after a hike in your regular income will help you be worry-free for your retirement life. If you find it difficult to plan your retirement, then you can go to trustworthy financial advisors like FinEdge to help you with your retirement planning.

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