Retirement Planning

592 Words2 Pages

what is retirement planning?
Retirement planning is the planning that is done by any employed person in preparation for life after the paid work ends. This necessarily does not only involve finances, but it also includes the choice of lifestyle and time spending.
Ten essential aspects in retirement planning
1. Develop the habit of saving and always stick to your goals
If you already have the habit of saving, whether it's for any goal or retirement, keep up. The habit of keeping always rewards. If you don't have this habit, then it's high time you start doing so. This starts by just saving a small amount and then trying to increase the amount every month. After saving, make retirement a priority and always stick to it as a goal.
2. Always evaluate your retirement needs. …show more content…

When you evaluate these needs, it will help you to understand the amount that you will be saving each month.
3. Contribute to the retirement saving plans provided by the employer and also learn about the pension plans offered by the employer.
If your employer has these retirement plans, join and take part fully. By doing this, you'll also benefit from the compound interests and also deferrals in tax and hence accumulation of the amount.
Also be aware of all the pension plans provided by the employer. If a plan does not exist you can advise your employer to start one.
If that's not the case, then you have to consider other alternatives. Also, you have to know what would happen to your benefits after changing of the job.
4. Use basic investment principles.
How you save your money is crucial. You have to know how your savings are invested. You also have to know how your investment is affected by other factors such as inflation. Also when investing, consider the aspect of diversification in or to reduce risks.
5. Retirement savings should not be

More about Retirement Planning

Open Document