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Headlines
Financial planning plays an important role in retirement
It includes establishing retirement income goals and making the necessary moves to meet those targets
A retirement decision should be based on a well-thought-out plan
Financial planning plays an important role in retirement. For a person with a salary as their main income source, retirement can mean a big cut in their total income. Additionally, the price rise is also a critical factor to look at while planning retirement.
It includes establishing retirement income goals and making the necessary moves to meet those targets. A retirement decision should be based on a well-thought-out plan as it has a direct bearing on one’s after-job life. The other important aspect worth noting is that retirement is about responsibilities and liabilities such as insurance premiums, loans, and other expenses.
On this note, let’s look at a few things which could be taken into consideration while planning retirement:
Financial health
If you are planning for retirement in the near future, you should always properly evaluate your financial health. Other than your financial health, one should have a detailed idea of their superannuation plans, physical and mental health status, and needs of their partner (if any). Once satisfied with these calculations, you should ask yourself -- “When do I want to retire?”
What’s the status of your retirement corpus?
Retirement corpus plays another important role in retirement planning. You can easily see how people who begin investing early in life have a relatively bigger corpus than others. These are the ones who don’t hesitate to hang up their boots. Thus, you must always have an idea about the corpus you need to aim to retire early in your life.
Post-retirement expenses
A good investment plan that can properly cover your expenses in post-retirement life is important.
Have you purchased a superannuation plan?
One must always ensure that they buy a good superannuation plan early in life to make their retirement life secure. You can easily access super when you hit your preservation age (between 55 and 60).
The last thing to know is that one must always enter the retirement phase debt-free. A person should always plan their liabilities in such a way that their retirement is debt-free.
