Retirement Planning – How early is early?

How early should one save for retirement is the question commonly asked by our clients. Our advice at VSK is – 'Retirement Planning should start right from day one of working'.

People have a tendency to procrastinate things which they cannot envision in the distant future. That is why retirement usually figures at the bottom of the priority list for majority of the young working population as it is many years away. There are too many other goals to juggle buying a house, car, marriage, etc during the working years. Later in their 30s and 40s, people have important goals like home loan repayment, child education, etc to take care of. By the time they reach their 50s, they realise that the PPF and EPF money will not be enough to take care of the retirement life and time is not on their side to build a big corpus.

Building a retirement corpus is thus not easy. Factors like increase in life expectancy, inflation, rising health expenses impact retirement savings and there is a distinct possibility that a retiree may outlive his savings. So it is important to start saving & investing early for retirement and let the power of compounding do its magic.

We at VSK provide a goal based investing approach which aims to bring greater clarity to clients. We provide guidance on the target corpus required for retirement and the investment strategy to achieve it. We prescribe an appropriate asset allocation by recommending investments in both equity and debt, depending upon a client’s income, lifestyle, etc. We also review the performance on a periodical basis to check whether the goal is on track.

We guide our clients not only on retirement planning but also to manage it properly after 60. The deployment of huge funds in a manner so as to ensure a regular stream of income to meet living expenses in the retirement age is a challenge. We help our clients on proper retirement corpus management without having to compromise on the lifestyle in the twilight years.

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