Retirement planning is ideally a life-long process. You can start at any stage of your life, but it works best if you factor it into your financial planning from the earlier stage itself. That’s the best way to ensure a safe, secure, and fun retirement. Future cash flows are estimated to determine if the retirement income goal will be achieved. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risks. 

Components to retirement pension planning:

1. Personal Planning

2. Financial Planning. 

Personal planning is important because it is the determining factor of your satisfaction with your retirement lifestyle. 

Financial planning is crucial because it identifies your sources of income and expenses and establishes your retirement budget, based on your personal plan. 

Benefits of retirement planning: 

The biggest of all, retirement planning boasts a huge benefit, *it helps one in getting a clearer picture, meaning a person gets clarity over gaps between their current financial position and future financial goals. 

Retirement planning has always been a process that we will have to face at some point in time. You can be prepared for any changes that are to come in the future that could affect your retirement. Working with a financial advisor can be a huge benefit as they can teach you aspects of the planning process you may not have thought of. Advisors can also help you put together a solid retirement plan that will ensure that you have a stress free retirement. If you are still unsure about retirement planning, below are four advantages of planning for your retirement.

Taking Advantage of Compounding Interest – As mentioned above, the earlier you begin planning and saving for retirement, the more you can reap the benefits of compounding interest. This Amount is interest calculated on the initial principal plus on the accumulated interest of previous periods.

Tax-free income creation: Many investors create an asset for retirement lot of books available in the market also mention asset accumulation, asset preservation, and asset distribution which result in investors buying property for retirement. This is a big mistake rather one should focus on the creation of tax-free income. Because of assets like property, equity is a liability in old age. The goal of retirement is to build up a stream of consistent income for clients which should be non-taxable.

Enjoy Independence during Your “Golden Years” – You have worked your entire life for your retirement; it is time to sit back, relax, and enjoy what the world has to offer and do things you want to do. In order to enjoy our golden years, you will need to plan for your retirement and start saving early if you want to have the funds to enjoy retirement.

Early retirement planning – The main theme in this article is that you should consider retirement planning. Along with all the benefits of planning ahead, the biggest of them all is that you will get to retire sooner than you expected.

In addition to this, it’s always safer to start investing in life in our early ages, when you start investing early, you get more fruit at the age of retirement. An investment at an early age gives a huge return post-retirement.

 *How the Covid-19 outbreak is a warning signal for early retirement planning*

 One thing is for sure, retirement is *certain* but what is not certain is *Catching a disease after retirement*. Covid-19 has been an example of the same, post-retirement, in old age, it becomes even more probable to catch a disease, it’s almost improbable to figure out when can you catch a disease, especially during a pandemic. It has been very well established that one’s life can be in danger at any point in time, insuring one’s health isn’t an expense, rather it’s an investment, in simpler terms, insurance of monetary security.

 Bottom line: A small amount of investment for retirement and life post-retirement should always be undertaken, taking a step early, takes you two steps forward in the future. A cent spent today, would earn you dollars in case of a catastrophe.

Insurance, in other terms, is an investment that makes your family’s future safe, helps you understand your financial goals, and last but not the least, take a huge burden off your shoulders. Invest wisely.