Retirement is the reality for which every working person must realize as soon as possible. Many young people ignore it thinking that it is a distant dream for which they can get prepared in later stages of their job because they are unaware of the Reasons Why Retirement Planning Is Important
However, if you want post-retirement financial security and want to retain your pre-retirement living standard, then it is necessary to plan for it as early as possible.
Apart from financial independence, there are many other reasons behind retirement planning here are a few of them:
Also read: LIC Jeevan Shanti Pension Plan Calculator
What is Retirement Planning?
Retirement planning is the strategy used for living a financially secure tomorrow. It is essential to plan for your retirement if you want to spend a financially independent and secure life after retirement. The planning is not always same for everyone because it depends on the individual goals and dreams. You must plan your retirement according to your needs and future ambitions.
8 Reasons of Retirement Planning
Below are the reasons for retirement planning in detail:
1. To Meet Medical Emergencies
Your body deteriorates with time and in today’s environment where critical diseases have become common, you can expect anything for your future. However, if you have enough finances for your future or if you have invested your money in retirement plan, then you do not have to worry much about medical emergencies. This is the main reason Why Retirement Planning is Important.
2. No Dependency on Children
Living independently is one of the biggest boons, especially in old age when you do not want to mold your day to day life according to others. This is possible only when you are not dependent on anyone for your finances and one of the biggest mediums to do so is a retirement plan.
3. You Cannot Work Forever
No matter if you are the strongest person and do not let age overpower your strength, but one day you may feel like taking rest and enjoying the peace of life. At that time having sufficient funds can help you to take the decision of retirement or pause from the job.
4. To Support Your Family
If you are among those who want to live with their family, then also having a financial backup is a must. This is because in that case you can help your family (children) financially to meet their future goals and it is possible only when you have taken the right retirement plan.
5. To Fulfill Your Bucket List
Retirement does not say that you have to go to old age and just sit in your home instead it also calls for various opportunities. Having money post-retirement gives you the strength to fulfill your bucket list without thinking much. If you have a dream of traveling, you can easily fulfill it by going to your favorite places. If you ever had a dream of learning guitar or violin, you can fulfill it without asking anybody. So, do not hesitate in investing in retirement plans.
6. Here We Do Not Have Any Concept of State Sponsored Plans for Pension
Like the UK and USA, India does not have any social security benefits and state pension plans during the retirement age. Therefore, you have to live on your own as there will not be any help or aid from any government authorities.
7. In Future You May Require More Money Than You Your Present or You Had in Your Past
Since rates of everything are skyrocketing, so in future, you may need more money than you required in your past or present. This is the reason it is suggested to take a retirement plan after analysing every aspect of it. Moreover, in your old age, you may need more finances for your medicines and other elderly requirements. So, keep investing by considering these points.
8. To Create a Safety Net to Meet All Your Future Needs When You Are Unable to Work
The intelligent person is one who plans his/her finances smartly and one way to do so is investing for your future in retirement plans. Having enough money for future not only gives you the confidence to meet all the future needs without hassle but also creates a safety net of around you.
Also read: LIC New Bima Gold Plan 179 Maturity Calculator
Conclusion
In this way, if you plan and save sufficient for your future, you can retire without any worry. This is because you will always have money to meet your needs without asking anyone. You will be able to live independently and enjoy your most precious time as per your own terms and conditions as you do not have to rely on anyone for your needs. It is suggested to start investing in a retirement plan as early as possible because the more money you have for your retirement years the more you will be able to enjoy your golden time.
8 Reasons Why Retirement Planning Is Important – FAQs
At what age should I start my retirement planning?
Ans. There is no such fixed age to start the retirement planning. AS soon as you start earning, you must start planning for your retirement. In case you have still not started, you can start it anytime.
Why is retirement planning essential?
Ans. Retirement planning provides you a financially secure life after your retirement. You don’t need to ask for money for your expenses. Also, in case you meet some medical emergency, you will not be a burden on your children.
Are there any government schemes for retirement planning?
Ans. Yes, there are various government and private schemes that you can invest in for your retirement planning. The government schemes like Atal Pension Yojana or national pension scheme are some of the examples.
