Retirement Planning: When Is The Right Time To Start?

To take advantage of compounding interest and provide a stable income for worry-free retirement life, you should start saving in a retirement plan while you are in your 30s.

Share on facebook
Share on twitter
Share on linkedin
Retirement Planning: When Is The Right Time To Start?

To take advantage of compounding interest and provide a stable income for worry-free retirement life, you should start saving in a retirement plan while you are in your 30s.

People tend to pay little thought to long-term planning and retirement, supposing that they will always be on the planet to manage what is to come, while busy enjoying the happy minutes with their families and companions, routine issues, and numerous commitments. Nonetheless, time passes quickly and unnoticeably as I reflect on this year and how the next one is not far away. Stressing about what’s coming is never a good idea, but approaching retirement ready slowly and deliberately can calm you down, and you’ll spend your golden years living an acceptable, happy existence.

Also Read: The Ultimate Guide To Retirement Planning Investment In India 2022 & Beyond

When Is The Right Time To Start Planning Your Retirement?

To avoid the wrath of inadequate retirement planning, it is strongly recommended that one begin retirement planning at the appropriate time. If you wait to save until you earn “a little more,” the day may never come, because your expenses are likely to rise in proportion to your earnings.

To put it another way, even if you consider the traditional retirement age of 60, your 30s are an excellent time to start investing a small amount on a regular basis in a retirement or pension plan to reap the benefits of compounding interest and creating a corpus or steady income in your retirement years. Compound interest accelerates the growth of your wealth because it is calculated not only on the principal but also on the interest earned “over time.” The earlier you begin, the more “time” you have and the more you benefit from compound interest.

The best time to begin planning and investing for your retirement is now, regardless of your age or financial situation. The sooner you begin investing for a specific goal, the more time your money has to compound. Assume you are 30 years old today and want to start a monthly SIP of INR 2000 for the next 30 years. Your money has plenty of time to compound and grow. Assuming a 12% annual interest rate, you can have a retirement corpus of 70 lakhs for an outlay of 7.2 lakhs over 30 years.

Read this blog post to learn more about the best time to begin preparing.

  • Getting started as soon as possible is crucial.

With so many expenses, there may be no such thing as a good moment to start planning for your retirement. Regardless, the earlier you get started, the easier it will be. You don’t have to set aside a percentage of your pay regularly; even the smallest amount of interest in your future may grow over time as money accumulate.

Even if you finally stop putting money aside for retirement due to unforeseen circumstances, the amount you’ve successfully contributed will have grown by the time you depart. As a result, it’s only natural that you start looking into your options once you have a steady job. If your job provides you with worker annuity benefits, you should consider if they will be sufficient for your retirement.

  • Seek professional assistance with retirement planning.

While learning about accounts is critical for your financial well-being, you may also hire a professional counselor to assist you in devising the ideal retirement plan for you. They can help you reduce your expenses, manage your debts, and plan for your retirement. Furthermore, if you’re inquisitive about the topic, speaking with a professional financial advisor will relieve your stress and prevent you from making a mistake.

  • Reduce your outgoings

If you simply cannot stand to set away a significant sum of money for your retirement, you might try a variety of cost-cutting and investment-funding strategies. You’ll have more money to put into your retirement if you plan and eliminate unnecessary expenses. Furthermore, this will aid you in developing a strong financial proclivity that will ensure that your retirement fund lasts for years to come.

  • Finding your Retirement Paradise is a Must

Making preparations for retirement also includes considering various housing options. You and your companion should consider whether moving to a different residence is the best option for you. You must start thinking about this aspect of retirement planning as soon as possible so that you have enough time to prepare.

  • It’s best to start when you’re in your forties

If you’re in your 40s and haven’t planned for retirement, now is the time to establish a solid plan that will ensure your financial security throughout your golden years. You should start by looking at your current reserve money. You’ll be able to locate the correct approaches to create your retirement shop once you’ve gained a better understanding of your financial situation.

Also Read: Retirement Planning: Traditional real estate method vs. Cryptocurrency?

But, how crucial is retirement planning?

Education, marriage, and having children are all important milestones in our lives, and retirement is no exception. Human life expectancy is growing rapidly as a result of greater medical treatment, higher health and cleanliness standards, and increased food supply. This indicates that, although our forefathers lived to be 77 years old on average in 1950, life expectancy has increased by nearly 10 years to 87 years old in 2010. When you combine our aim to retire approximately 10 years earlier – perhaps around the age of 50 – you’re looking at a solid 20 more years of retired life and perhaps 30-40 years without working or earning an income.

This figure is almost certainly higher than the number of years you worked at your previous employer. If you want to retire solely from work and not from life, if you want retirement to include more than “needs,” such as “comforts” and “luxuries,” and if the terrifying prospect of cost-of-living hikes 30-40 years down the road has crossed your mind, retirement planning should be your top priority. Unfortunately, research reveals that most individuals put retirement planning last on their financial to-do list and that the majority of people don’t even think of it as a major event to plan for. However, if you are looking for an ideal option to invest, then the real estate investment opportunities with Assetmonk may be an ideal option for you.

Best way to plan for retirement

Consider the following phases in retirement planning:

  • Determine your retirement age: 

Whether you plan to retire at 60 or sooner will have an impact on the amount of money you’ll need to save. The lower the contributions are necessary the closer you go to your target retirement age because compounding interest will increase your money quicker.

  • Post-retirement lifestyle: 

A simple, easygoing way of life may necessitate less expenditure. On the other hand, if you want to establish a business tomorrow, you’ll need to save more money now.

  • Medical Crises: 

As people become older, they experience health problems and medical emergencies. When planning for retirement, keep such financial pressures in mind.

  • Calculate total retirement expenditures: 

Add up your annual living expenses, travel costs, and emergency expenses, then multiply by the number of years you’ll be retired (20, 25, or 30 years depending on when you want to retire). Add in one-time expenses like children’s college fees and prospective venture charges, plus inflation, and you’ve got a rough estimate of how much money you’ll need to live comfortably in retirement.

  • Begin investing as soon as possible: 

If you start at the age of 30, the investment necessary for a retirement corpus of Rs. 1 crore will be significantly less than what you’d have to invest at age 40 or later. When you start early, the compounding interest you receive will be substantially higher over a longer period.

  • Decide on a retirement plan: 

Finally, decide on a retirement plan and begin saving regularly. For individuals planning for retirement, the HDFC Life Systematic Retirement Plan is one of the best options on the market. It has a short premium payment period for systematic premium payments and the ability to delay annuity payouts by selecting the Deferment Period. You obtain guaranteed income for the rest of your life, with the option of receiving annuity payments monthly, quarterly, half-yearly, or yearly, as well as a refund of all premiums paid in the event of death.

Also Read: What Is Pre-retirement Planning In India?

Finally, how comfortable and worry-free your retirement life will be will largely be determined by how early you start planning for retirement. A well-timed investment might be the difference between your retirement fantasies and reality! Despite the notion that it’s never too early to start planning for retirement, life can get in the way and make it unimaginable. You must design a retirement strategy that addresses your concerns and put it into action as soon as possible. If you’re looking for a real estate partner to start investing with, Assetmonk could be the ideal solution. Assetmonk has been offering its clients some of the safest and most innovative solutions available in India. Get in contact with our team right now to get started on your investments.

Right Time To Start Retirement Planning FAQ's:

The optimum time to start thinking about retirement is while you’re in your twenties. You may want to enjoy your life right now, but if you can save now, you will have a sizable nest egg when you retire.

Begin saving, maintain saving, and stick to your plan. Recognize your retirement requirements. Make a contribution to your employer’s pension plan. Find out about your company’s pension plan. Consider the fundamentals of investing. Don’t tamper with your retirement funds. Some retirement planning strategies include asking your company to create a plan, putting money into an Individual Retirement Account, and so on.

A retirement plan is intended to assist you to plan for your post-retirement years and live a stress-free existence. A retirement savings plan, for example, can help you build your money and provide a steady income for the rest of your life. These programs let you put money down for your retirement while you are still working.

Related Articles

istockphoto 1313421433 612x612 1

Pradhan Mantri Kisan Samman Nidhi Yojana

What is the Pradhan Mantri Kisan Samman Nidhi Yojana? The Pradhan Mantri Kisan Samman Nidhi Yojana is a plan initiated by the Indian government. It gives income help of as much as Rs. 6000/- annually to all marginal and small farmers. Families of land-owning farmers receive an Rs. 6000/-  cash advantage a year under the Pradhan Mantri Kisan Samman Nidhi Yojana plan. This amount will get paid Rs. 2000/- in 3 equal payments per 4 months. Also, read Saving Schemes in India. The Motive of the Pradhan Mantri Kisan Samman Nidhi Yojana? As we all know, agriculture is the backbone in the Indian economy. So, farmers are an important part of society. But, the economy has socioeconomic gaps between the urban areas with rural areas. So, farmers battle with long-term profitability. This problem has afflicted the majority of India’s people since its freedom. The state and federal governments have worked to solve this challenge. They have also introduced a variety…

Read more
istockphoto 951524746 612x612 1

Post Office Time Deposit

So, what is the Post Office Time Deposit Scheme? India Post provides the post office time deposit as a modest savings program for Indians. Post Office Time Deposit Scheme is a savings account investment provided by India Post. This program gets intended for depositors who desire to make a one-time deposit with an FD of 5-year which is a tax advantage. With a few exceptions, it is identical to a bank fixed deposit. People can create a post office time deposit account by approaching their closest post office or by utilizing India Post’s official app or website. India Post has been in existence since 1854. It is the most globally disseminated postal network, with over 1.55 lakh offices spread over India. Majorly known for mail delivery, India Post also offers these services: Small savings schemes. Postal Life Insurance and Rural Postal Life Insurance Instant money order E-money order. Mutual funds. Services for money transfer Also read Post Office Investments –…

Read more
istockphoto 1364622197 612x612 1


PPF Vs SSY: What is the difference between the two? Sukanya Samriddhi Yojana Account (SSY) and Public Provident Fund (PPF) are the safest investments. These are accessible to those desiring significant financial development with a low-risk component. So, if you wish to invest in any or both of these schemes, you would investigate and check. Financial objectives, risk tolerance, rate of interest, and versatility should all get addressed. Read SSY – Sukanya Samriddhi Yojana Benefits & Interest Rates. PPF Vs SSY PPF and SSY are solid investment options, although they differ in important ways. The Sukanya Samriddhi Yojana is a female child welfare plan. It helps to safeguard a girl child’s future. But, the PPF is a program that enables depositors to receive zero-tax interest. In India, the Public Provident Fund (PPF) plan provides a long-term investing choice. It provides high profits while also giving tax deductions to the investor. A PPF account may get created in any private or…

Read more
Small Savings Schemes

Small Savings Schemes

Small savings schemes are an excellent way to save money. They offer a good rate of interest and can be used as an alternative form of collateral for investments, bonds, and property. The following schemes are available throughout the country and are some of the most popular ones that you can consider: Post Office Time Deposit Scheme The Post Office Time Deposit Scheme (POSTD) is a small savings scheme launched by the Government of India to provide investment opportunities in the secondary market. The scheme was launched on 15th September, 2015. This scheme is popular in rural as well as remote corners of the country, where the people have limited access to other financial products or alternative investments. The Ministry of Finance sets the interest rates for this scheme based on the performance of government securities, which is generally spread across the yields of the government sector. For 2022, the rates of interest are 5.5%, 5.7%, 5.8%, and 6.7% for…

Read more
istockphoto 1033711098 612x612 1

UAN Helpdesk

What is the UAN helpdesk for PF account holders? UAN is a 12-digit Universal Account Number that is assigned to every PF account holder at the time of joining the first job. The PF number when allocated, is used for each organization through the use of UAN. The new PF identification number that the person is associated with is his UAN in each new company of which an employee is a part. UAN can be described as a code that is used to identify several PF account IDs for an individual participant. It serves as an umbrella for multiple PF IDs assigned to individuals by various organizations. Also read UAN Registration & Activation Process Online. What exactly is UAN Helpdesk? The Employee’s Provident Fund Organization, India has a separate helpdesk online for (Universal Account Number) UAN-related issues and complaints. Users can access the helpdesk online and resolve their issues on their own or contact the executive offline. Employees can also…

Read more
child saving scheme

Child Saving Schemes

A child is the most precious thing in your life, and it’s important that you take care of them. However, it can be hard to know how much money you should save for their future education, health, and insurance needs. There are many different types of child saving schemes available for parents who want to safeguard their children from financial difficulties later in life. Here are some examples: Sukanya Samriddhi Scheme The Sukanya Samriddhi Yojana is a child saving scheme specially made for girl children. It was launched by Prime Minister Narendra Modi on January 22, 2015. The objective of this scheme is to promote the financial inclusion of girls in India by incentivizing them to save money through the Sukanya Samriddhi account. The interest rate ordered by this scheme is 7.6% per annum, and the minimum and maximum investment amounts are ₹250 and ₹1.5 lakh per annum respectively. Also, the maturity period of the Sukanya Samriddhi Scheme depends on…

Read more