The objective of retirement planning is to balance the income and expenditure during the post retirement dependency period. Till recently, most of the aged people lived with their families after retirement with or without any pension or any plan for self-dependence.
Your existing retirement benefit plans would vary from person to person depending upon the kind of employment, saving patterns followed, etc. Before going in for a comprehensive retirement plan, it is necessary that you asses the existing retirement benefit plans and build your retirement plan around them so as to meet the required additional needs.
Retirement planning is a multidimensional field. Many of us approach retirement planning from only an investment point of view. This perspective is too limited for dealing with the diversified needs that we may have from our retirement plan.
Now that you are ready to invest for your retirement, it is important to understand where to invest. Each type of investment has distinct advantages and disadvantages, and because each tends to behave differently in different types of economic mood swings, any long-term investor’s portfolio should be broadly diversified.
Retirement planning ensures that you will continue to earn a satisfying income and enjoy a comfortable lifestyle, even when you are no longer working. An increasing number of young Indian professionals are moving away from the traditional joint family structure. Since support no longer comes easily, parents have realized the need to provide for themselves during their retirement years.