Retirement might seem like a distant thing to worry about when people are young, but if they do want to lead a comfortable and dignified retired life it is prudent to start financial planning early on. Regardless of what would be the ideal retirement scenario for a person, they would definitely need money. Kavan Choksi further mentions that the increase in average life expectancy also increases the need for retirement planning. It helps make sure that one not only has a source of income during their retirement years, but also gets access to enough funds to manage medical emergencies.
Kavan Choksi offers a brief overview of the importance of retirement planning
Retirement planning involves setting aside funds and investing specifically with the goal of using them after retirement. Growing old can be pretty expensive. Even though the frivolous expenses of a person may reduce with age, their medical expenses are only likely to go up. Moreover, there is always the burden of inflation. In this situation, not having an adequate amount of money to sustain future expenses can cause a lot of worry and stress. Hence, one must plan for their retirement properly to stay financially stable in their later years without depending on others.
Retirement planning is quite helpful in enabling people to lead a peaceful and stress-free life. As they have investments in place that earn regular income during retirement years, one is able to lead their life in the manner they want, without any worries. Retirement is the time when people deserve to relax and reap the benefits of all the hard work. One must also note that investing in retirement can be pretty useful in helping people to earn inflation-beating returns. Simply holding money in a bank savings account would not generate high returns. Basically, the interest earned on a savings account will not be enough to lead a comfortable retirement. Hence, a proper investment planning is needed to allow you to generate major returns in the long term
It would be a prudent choice to start planning for retirement right from the time one starts to earn enough money to save and invest. Choosing to start a retirement fund at the early stages of life will help people to accumulate a sufficient corpus, and also help in reducing the financial burden of a person as they get closer to the retirement age. Kavan Choksi points out that a lot of people end up postponing planning for retirement as they think that it is decades away. However, choosing to invest in retirement in the early stages of life when the financial responsibilities are low actually aids in reducing the burden of investing for it later. Kavan is a successful investor and wealth advisor.
Retirement planning always does not mean that a person should just concentrate on their finances. In fact, retirement planning ideally involves a combination of financial and personal planning. Personal planning basically is used to determine the needs of a person during their retirement. On the other hand, financial planning helps in budgeting income and expenses on the basis of the personal plan.