A retirement plan is something that is typically given much less importance than it deserves. Even when you start planning it, you tend to begin too late. As a result, you do not get to accumulate as much of a corpus as you would want. Keeping that in mind, here’s pointing out all the reasons why you need to think of retirement planning.
- Financial independence
The most important reason behind such a plan is to gain financial independence. You have remained financially independent for such a large part of your life – thanks to the steady source of monthly income. After retirement, the last thing you would want is to depend on your children for every penny, be it your monthly expenses or medical bills.
Thus, if you have your retirement planning in place, then you can enjoy financial independence all through your life.
- Absence of social retirement benefits
In our country, there is still no system of proper retirement benefits for senior citizens. There are employee provident funds and pensions offered by some companies, but they are not enough to cover the expenses. Remember: pensions and such retirement benefits are not a part of the plan for every company!
Thus, it becomes all the more important to have a proper retirement plan to help you sail through that period of life.
- Preparing for inflation
There is no denying that inflation is affecting every aspect of your life. The medical bills are rising, and so is the cost of daily living. In fact, you will be paying more and more for your children’s education as time passes.
So, you need to prepare yourself to meet the inflation beforehand. You would not want to compromise on anything simply because you don’t have enough funds to meet the rising expenses.
- Fulfilling your wishes and aims
Your dreams and wishes do not end before retirement. In fact, retirement is the perfect time to fulfill some of your most cherished dreams.
Want to take a cruise on the Mediterranean? Go ahead! You no longer need to forward a leave application to your company for that. Or, do you want to take a trip to Europe like you have always dreamt of? No one’s stopping you now! Saving up beforehand is the best way to fulfill your dreams.
- Addressing medical emergencies
Lastly, there are always chances of medical emergencies coming up unannounced. However, such chances are even greater when you are at an older age. Ailments like high blood pressure, high blood sugar, joint pain, and so on are common troubles when you reach the age of retirement. It is necessary to plan beforehand to make sure you have the funds to address all medical emergencies and even routine health check-ups.
So, if you are yet to plan your retirement, then go ahead and do it right away. Figure out the investments and insurance plans that will work the best for you.