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Retirement planning is the first thing that need to start in one’s early years of earning which will show results during the non-earning years or non-working years of life. This is a long term process where you put your money to work for you rather than you work for it or when you don’t work. As it is a process it involves some elements like time, a definite amount of money for investing and financial discipline in investing. Retirement planning can be mentioned as a life time savings plan.

Retirement planning as it is - a long term continuous process, need to be done step by step during different stages of life. The money you save for your later years of life should form a corpus that can take care of not only for your non earning years of life but also to support your life partner in her later years of life. To create a corpus you need to assess what amount is required for leading a comfortable retired life.  This can be arrived through an estimation of you present life style and living expenses plus the effect of inflation on increase in cost of expenditure.

Factors that directly affect your corpus are your earnings and saving capacity at various stages of life. In addition there will be other family liabilities like children education, marriage that come in your way during the same time which may compel you to dip into the corpus. So as said earlier you need to be financially disciplined to stick on to your goal and at the same time plan for other equally important necessities through separate goal based planning.

 Another indirect important factor that can erode the value of your investments and corpus is inflation. You need to discount the inflation rate at various stages to save enough for your retirement. For this you have to choose investing in assets and financial products that can beat inflation over longer periods. Investing in NPS, Direct Equity, Equity mutual funds through SIP, Inflation indexed bonds, PPF (the tax benefit works in your favour) and real estate are some of the popular products that will help you in creating a nest egg for your retirement.

Once the retirement plan is drafted, you need to execute it with financial discipline. Monitor your investments at regular intervals to find out whether they are generating adequate returns or not. If necessary you need to rebalance your portfolio as per life stage and market conditions. Other things you need to take care as part of retirement planning are your Health, fulfilling the family responsibilities as far as possible before retirement, deciding the place of retirement etc. which will have influence on your retired years of life.

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