However, this indeed shows that most of are not planning well enough. While your social security funds will not likely cover all your expenses after retirement, you would be mostly living out of your life’s savings.
The general rule for retirement planning is that you will need 70% of your current income to sustain comfortably. However, old age is also about poor health, debt clearance and more chances of emergencies. So what does this necessarily mean?
As per experts, the proverbial “slow and steady wins the race” also applies to retirement planning. It is time that plays a great factor here. if a 25 year old realizes that he should be stating to contribute regularly to the retirement funds, he is likely to save more and sacrifice less than if the realization comes at the age of 40. In the later case, retirement from the current job means wishing for an extension or getting into another job, but this is not a very preferable arrangement.
It certainly is tough to start saving when you are as young as 25. However, a way out would be arranging to automatically deduct a percentage of your salary towards a retirement fund. When money doesn’t come to hand, you aren’t so tempted to spend it! However, if you are already closing upon your 50’s, there is a dire need to take up some really aggressive salary cut towards retirement planning. An alternative for both the age groups would also be to look for a suitable retirement plan India, which would be taking care of the calculations and future needs based on your employment, spending habits, market fluctuations and the change in the value of the Rupee.