If you understand these 7 Golden Rules at a young age, then consider yourself to have won the game! Old age will pass with pride.

Old age is that stage of life that is bound to come in everyone's life. At that stage of age, you will neither have the strength nor the ability as you have today, nor a solid source of income. Therefore, it is wise to plan for old age from the days of youth itself and make all the arrangements in time, which will be very important for us at that time. This is what we call retirement planning. But for good retirement planning, the right strategy is needed. Here are those 7 golden rules related to retirement planning, if adopted at a young age, then old age will pass with fun.

First of all, decide how much money you will need after retirement. This should include your monthly expenses, health related needs and whatever needs you have according to your lifestyle. Apart from this, you will also have to keep the inflation rate in mind because the amount with which you are living a better life today, you will need more money to live the same life in future. Once you estimate your retirement fund, you will be able to do financial planning easily.

The sooner you start planning for retirement, the better it will be for you. If your salary is low, then start investing with a small amount and maintain this investment. As the income increases, keep increasing your investment. The sooner you start investing, the longer you will be able to invest and get maximum benefit of compounding.

Now the question is where to invest? To meet the needs after retirement, you can add a good retirement fund by increasing the contribution to EPF through VPF. Apart from this, by investing in NPS, you can arrange both retirement fund and pension for yourself. In terms of wealth creation, you can invest in Mutual Funds through SIP and can accumulate a large fund till old age. Apart from this, you can also secure your future through schemes like PPF, Fixed Deposit.

Inflation will affect your expenses even after retirement. Therefore, while investing, give priority to such schemes which give better returns than the inflation rate. For this, you can take advice from a financial expert.

Health related expenses usually increase after retirement, so do not ignore this expense at all. To deal with them, take health insurance. This gives you financial help in medical emergency and your savings remain safe.

Try to repay whatever loans you have taken in your youth before retirement, so that after retirement you do not have the responsibility of repaying any kind of loan. By doing this, there will be no pressure on your retirement savings.

Review your retirement planning from time to time. Check whether your investment is in the right direction or not. Make changes in it if needed.