Retirement Planning: Why is retirement planning important and how to do it..

In today's time, GenZ earns quite well, but most of the earnings are spent on fulfilling hobbies. But the wisdom lies in securing your future first with your earnings, fulfilling your needs, and then finally giving priority to your hobbies. Retirement planning is also a part of future planning. In old age, when your body is not capable of doing much hard work, then only your savings come in handy. Let us tell you why retirement planning is important and how it should be done. If GenZ understands this today, then they will never regret it in the future.

Why is retirement planning important?

In earlier times, people used to depend on pensions, but in today's era, the facility of pensions has become very limited. Medical expenses are increasing. Health-related problems can increase with age. At the same time, inflation is increasing rapidly, due to which expenses will be more in the future. Even after retirement, you need money to live a comfortable life. For this, it is very important to start retirement planning in time.

How to plan for retirement?

- SIP (Systematic Investment Plan): This is an easy way, where you can create a big fund in the long term by investing small amounts.

- PPF (Public Provident Fund): This is a safe and tax-free investment option, which gives good returns in the long run.

- NPS (National Pension System): By investing in this government-run scheme, you can get a pension after retirement.

- Stock market and gold investment: If you are willing to take a little risk, then these options can also give good returns.

Create a big fund from small savings

Many people think that a large amount is needed to invest for retirement, but this is not true. You can create a big fund even by saving small amounts every month. Apart from this, the sooner you invest, the more returns you can get. If you start investing at the age of 25-30, you will have more time to take advantage of compounding. For example, if you invest just ₹5000 every month in a good mutual fund or PPF, then in 30-35 years you will accumulate a good amount through it which will be useful in your old age.

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