When Should One Purchase A Retirement Plan?

A retirement plan is a must have before you decide to retire from your current job. After working for years you would want a stress free financially independent life, which you can achieve by opting for a retirement plan. A retirement plan will help you accumulate a part of your savings over a certain period of time. These plans are a blend of life insurance and investment tools which help you create a corpus to ensure a financially independent life post retirement. The biggest question that arises is when should I start planning for retirement. 

Most people in India choose to retire by the age of 65-70 years and to achieve financial independence/ensuring stable income post retirement one must start investing in a retirement plan at an early age so that they have a decent amount of time to build a corpus. 

When Should One Purchase A Retirement Plan?

Ideally you should be prepared with a retirement plan at least 10-15 years before you plan to retire, this way you have plenty of time to build a corpus. The answer to the question, “When should one purchase a retirement plan?”, is that one should start planning as soon as possible. Ideally, you should start saving your money as soon as you start making a living for yourself and your family. One should purchase a retirement plan when his/her income grows and they have enough cash to spare/invest in a retirement plan. Retirement plan can help you create a corpus over time. You can easily start investing your earnings in a retirement plan by the time you reach the age of 30-40 years. A retirement plan can come handy to fulfill long term financial goals, post retirement expenses, medical expenses etc. In case you wish to opt for retirement by the age of 50, you must start planning from a very young age to achieve financial independence and ensure stable income post retirement. 

To Conclude

Financial planning for retirement should be a necessity for everyone, without a financial plan one cannot attain financial independence or financial stability post retirement. First step towards a financially independent post retirement phase of life is to purchase and start investing in a retirement plan at a young age. A retirement plan can come handy to fulfill long term financial goals, post retirement expenses, medical expenses etc.

Also read: 

Pros And Cons of Pension Plans in India

Top Reasons to Save For Retirement Now

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.