Time has changed, and nothing’s conventional anymore. Work is not just a 9 to 5 job, aspirations are not only limited to buying a home and car, and the definition of a fulfilling life is different than ever before. Similar to this, the idea of life postretirement has also changed. It no longer means sitting at home, waiting for life to draw its curtains while you receive meagre pension money. Instead, most of you, who are in your 20s, now aspire to take early retirementto do all kinds of big, bold and even bizarre things.
However, just aspiring is not enough. You need to have a financial plan in place to realize all your dreams without depending on others. Out of all working people, only 33% put their money aside towards retirement, says the source. Not having a robust financial backing may pose challenges in enjoying a secure lifeafter retirement. In contrast, if you plan your retirement and put your money in different investment plans like the Unit Linked Insurance Plan (ULIPs), then you can enjoy considerable benefits over the years.
Are you still wondering whetherthe 20s is a good time for retirement planningor not? Here are four reasons that will compel you to start planning for the golden years of your life right now:
1. You Get to Build a Significant Corpus
Time is a significant factor when making investments. Starting as early as in your 20s will give you the benefit of accumulating a higher sum of money over a more extended perioddue tothe compounding effect. It will help you build a corpus of funds that you can utilize to realize your dreams, such as going on a world tour, buying your dream car and similar others.
- 2. You Can Enjoy Financial Freedom
When you reach your 30s and 40s, there are so many expenses to care about, such as kid’s tuition fees and increasing healthcare expenses. If you meet all these expenses from your monthly salary, you will not be able to save much. By the time you reach your retirement stage, you will only be left dependent on your pension plan, which can only fulfil the basic needs.
You may also invest in retirement plans that provide you with a steady income post-retirement. Doing this will ensure you do not depend on anyone as the corpus will enable you to enjoy financial freedom, be it for financing your medical care costs or your dream business.
- 3. You Can Avail Tax Benefits
If you put your money in insurance and investment plans like ULIP, provident fund and Equity-linked savings scheme, you can enjoy tax exemption benefits on the same. These plans will provide you with an excellent way to save your hard-earned money in every financial year. Also, tax saving mutual funds can give your high returns as well as exemption benefits to gain an advantage.
- 4. Sense of Security
One primary concern that people have post-retirement is the dependence on others to meet various expenses. Increased health issues and other challenges, coupled with no regular income, can make it tough to live through the years. However, when you invest in a retirement plan, you put aside a sum of money while you are earning a regular income. Later, upon your retirement, you will receive the accumulated money in the form of a steady monthly income. Such payouts will help you meet various expenses with relative ease.
Plan Early for A Secured Retirement
If you want to realize a secure and comfortable retirement life, then don’t wait for the years to pass.Plan now and invest for your retirement and other investments like retirement plans and ULIP at the earliest. In doing so, you can takehelp from reputable financial advisors like Finedge to get the right advice about ways to plan your retirement.