NEED FOR RETIREMENT PLANNING

Everyone has to retire at some point of time from their working lives. Everyone has plans on how they will live their lives to the fullest after retirement.With the help of inflation,cost of living is increasing at steady space and it is also affecting our expenses with each passing year.After retirement,there won't be regular income and expenses will continue to rise.So, we have to plan our future judiciously.

Right Retirement Plan provides financial security when regular income has stopped coming from professional life after retirement to live without compromising living standards. 

Why you should start planning for retirement at early stage of professional life:

1. Life expectancy : With better food supply and nutrition, healthier lifestyle, better hygiene and advances in healthcare, Indians now live longer. At present the life expectancy at birth for males is 67 years and 71 years for females, so we will have to live more number of years post retirement. And according to the World Population Prospects 2012 published by the United Nations, the share of people aged 65 years and above in the country is forecast to increase from 5.1 percent in 2010 to 12.7 percent in 2050, while the average life expectancy is projected to increase from around 65 years in 2010 to 73 years in 2050. 
2. No government sponsored pension plan : The government of India does not provide universal social security benefits to elderly people except government servants and for some people below poverty level.So we have to rely on our own savings.
3. Nuclear families : The culture of joint family in our society is changing.Young generation either prefers independence and stays away from their family or forced to live away from parents.Hence people have to accumulate a corpus to last them through their retirement without any help from family.
4. Medical emergencies : Health problems directly proportionate to age.Sudden or prolong health problems make a huge dent in our income post retirement.Without proper planning this could lead us to liquidate our assets in order to meet such expenses.
5. Inflation :  We need to take into account cost of inflation while planning for our financial goals because it hugely affects our net purchasing power of savings.
6. Replacement of Regular steady income : With retirement our regular income stopped and we have to live with the funds available from our own savings.To live at present status we have to plan our investment wisely.
7. Working years & Early Retirement : No. of working years fixed but longevity is increasing.After globalization, job pressure has become one of the criteria to retire early for which planning for retirement is very crucial.Early Retirement means more years of retirement to pay for.This is a double whammy because you not only have more years to pay for, but you also end up with fewer working years to fund the retirement.