Discover more from JJ Tax Blog
WHEN SHOULD YOU RETIRE?
Retirement is a blissful period that everyone looks forward to.
It is the end result of your hard work where you get to enjoy a smooth and stress-free life with the assets and commodities that you have built with determination.
So, when can you look forward to retirement? The answer is simple, there is no right age to retire!
But there definitely is a right time. Retirement planning should be your top priority in life if you want to retire only from work and not from life.
If you want retirement to include more than just "needs," such as "comforts" and "luxuries," or if the terrifying thought of cost-of-living increases 30 to 40 years from now has crossed your mind.
So the better question to ask here is what age should you start planning for retirement? And how the planning should be done?
Choose your retirement age:
Your investment needs will be affected by whether you plan to retire at 60 or sooner. The less the contributions needed are as you get closer to your ideal retirement age since compound interest will cause your money to grow quicker.
Living frugally and simply could demand less money. On the other side, you will need more funds now if you want to launch a business shortly.
Health problems and medical emergencies are a part of becoming older. Consider these financial responsibilities while making retirement plans.
Add up your annual living expenditures, travel charges, and emergency needs, then multiply by the number of years you will be retired (20, 25, or 30 years depending on when you want to retire). You may estimate how much money is needed to live comfortably in retirement by adding one-time fees like children's tuition and potential startup costs to this amount and accounting for inflation.
Start your investments early:
If you start saving for retirement at age 30, for a retirement corpus of, say, Rs. 1 crore, the investment required will be far lower than what you'd have to invest at age 40 or later. When you start early, the compound interest you earn will also be significantly larger over a longer period of time.
Pick a retirement plan:
Finally, decide on a retirement plan and begin making disciplined investments.
Finally, it all comes down to how early you start planning for it.
Your retirement aspirations can just come true with the help of a timely investment!