Did anyone advice you that when you take up a new job while you are young and have a lot to build in order to lead a good life of your own, you should start saving something for days when you will not have any income. Yes, we are talking about your retirement. If you are in your twenties, it is about forty years before you retire. This is the right time for you to start putting money away for retirement.
Every penny that you save and invest today will help you when you retire. Start saving now for retirement, even if it is only in modest amounts. “Why should I save when I have just begun earning my own money?” Save because something or the other will go wrong, it mostly does. And when it will, you won’t have to look for loans or mortgage your resources.
Why should I save for my Retirement now?
It would be so comfortable to have your full year’s income in your savings account as a cushion against almost any foreseeable/unforeseeable disaster. And believe me when I say it, retirement can hurt you worse than a disaster if you don’t have any money saved for it!
Can you live your life once you retire as a saint in a single room, not visiting your favorite restaurant, simply because now that you have retired, you can’t afford to dine out? You don’t want that, do you? If you are young and consistent in your efforts of saving and investing your income, you can accumulate a large sum of money and assets by the time you retire.
What Can Go Wrong if I don’t Save for my Retirement?
Accumulating wealth requires discipline and a habit of saving consistently. Even if you never want to retire, you should consider the possibility that you will either willingly change your mind or you will be forced to.
What if you live for a 100 years, will you still be working? Who will support your children’s education and marriage? Will you break your FD to support your family needs during your retirement? Start saving for your retirement and don’t touch these savings until the day you retire. But it is impossible to tell how much income your savings will provide because market prices change every year and what if the value of your money declines before you spend it? Most people don’t save enough to have the same income during their retirement years that they had during their working years. Then they face difficulties in adjusting in the new rather difficult lifestyle.
How to Save for your Retirement the Right Way?
I understand that in a time like your twenties, it is very difficult to focus on something so far ahead of you as your retirement. But if you are wise, you know that now you are in better health and spirits and capable of earning more. Trust me, this will not always be the same. Now is the easiest time to start retirement planning!
Many people go for government jobs just to secure a pension, others work in the same company for 30 years so that they can retire with a nice pension. Retirement lasts ten to fifteen years for an average person. Consider that you will live to be 100 and you will retire at 60 or 65. Will you have enough money to live for 30 to 35 years without a job? Do you want to work when you are 80? I don’t think a lot of you will say “yes” to it even if you are adventurous in nature right now!
What should you do? Take the advice of a financial professional to figure out how much you can save without compromising your present life and how much will you need when you retire. Even if you are rich, saving before you retire will bring real comfort over the years. A good retirement also means that you get to pursue your hobbies, interests and passions without worrying all that much about finances. Visualize your retirement – this will help you in getting a better understanding of the finances you will need to manage for your retirement. Certainly, once you retire, the first thing you will need is a reliable source from which you can withdraw money. Even the smallest savings add up over time. Save regularly and consistently and try to make your savings last as long as possible.
So, you’ve decided and an early retirement sounds good to you. Or you may already have a little retirement money set aside, in which case you’re already ahead of the game and may be able to retire with a fortune.
HDFC Retirement Saving Fund is a good option for your investment as it provides long-term capital appreciation or income by investing in a mix of equity and debt instruments to help investors meet their retirement goals. The Fund has 80.19% investment in Indian stocks of which 43.52% is in large cap stocks, 8.93% is in mid cap stocks, 26.14% in small cap stocks. The Fund has 14.08% investment in Debt of which 5.79% in Government securities, 7.79% in funds invested in very low risk securities. It would be a wise decision to invest in HDFC Retirement Saving Fund and secure your retirement.