How To Plan For Retirement As Per Your Age

If you’re in your twenties or thirties, now is the best time to start working with a retirement planner. The earlier you start, the more you’ll have when you retire. Consider starting a SIP in an aggressive equity oriented fund with an automated annual step up in place. Also, take advantage of any employer-matching contributions such as provident fund.

In your forties, it’s a good time to sit down with your retirement planner to make sure you’re on track for retirement. Start thinking about how much you’ll need to save each month to reach your retirement goals. Since your forties are likely to witness a substantial bump up in your income in the form of bonuses or other payoffs such as the vesting of your stock options, make sure you resist the temptation to fritter it all away or pile on too many loans. Working with a retirement planner to set up a 15-20 year investment plan for lump sums that come your way can be extremely helpful during this life stage.

In your fifties, it’s time to really buckle down and focus on retirement. This is the time to increase your retirement savings as much as possible because you are now less than a decade away from your retirement. Step up your SIP's  as much as possible and continue investing aggressively because you are still in a sweet spot in terms of your time horizon. As you enter your late fifties, your retirement planner should ideally help you with a systematic de-risking strategy that should reduce your chances of capital erosion before you enter your sixties.

If you’re in your sixties, it’s time to start planning for retirement income. Start by working with your retirement planner to create a retirement budget to determine how much income you’ll need in retirement. Then, look at your retirement savings and calculate how much you can safely withdraw each year. Consider investing in annuities or other guaranteed income sources to provide a steady stream of income.

Finally, no matter your age, make sure to create an estate plan. This includes creating a will and a and a power of attorney. These documents will ensure that your wishes are followed if you become incapacitated or pass away. A lot of people end up passing away intestate, and this leads to serious problems with respect to how their assets should be distributed. As grim as it sounds, estate planning is a critical component of financial advisory services for a reason.

No matter your age, it’s important to plan for retirement. Start by setting realistic goals and creating a plan to reach them. Make sure that you have a competent and unbiased retirement planner helping you along the journey!