Suppose you want to retire in 50 years. But before then you need to plan for at least another 35 to 40 years of resources. And it is not that you can do it in one day. But for this you have to plan at the beginning of life.
We know but we don’t. And the list of don’ts is quite long. which permeates almost every part of our lives. Not planning and saving for retirement is also one of the list.
Keep in mind your current age and how long you can expect to live
This is one of the primary calculations for saving for retirement. Your current age and how many years after retirement you need to save for. If you want to retire early, think about the rest of your life but opting out of regular income opportunities and living on monthly income from savings. Suppose you want to retire in 50 years. But before then you need to plan for at least another 35 to 40 years of resources. And it is not that you can do it in one day. But for this you have to plan at the beginning of life.
Do you have the inflation rate in mind? Today you are thinking that after retirement, you will have 1500 taka per month. You actually think that what fifty thousand rupees can buy today, thirty years from now you can only buy the same amount of things. The problem is you’re not thinking about inflation. What you can buy for fifty thousand rupees today, but after retirement, you will need a lot more money to buy because of inflation. So calculate keeping the average inflation figure in mind.
Return on savings
You will not withdraw the entire savings in retirement. So how not to withdraw extra money for the need, but how to invest the rest of the rush and savings on that need but have to think. Notebook with pencil.
Spreading savings
Just as before retirement you invested in various places thinking of returns, after retirement you should walk the same path. But the way you did it before retirement, you can’t do it after retirement. For example, before retirement, you may have invested heavily in stocks in search of higher returns. But after retirement you may have to reduce the share investment.
Review your savings account regularly
Your longest-term savings plan is your retirement savings. So towards this goal we usually invest in areas where the return is very high if the money is left for a long time. But the risk is that because the time horizon is long today, where the money is poured in with the assurance of relief, after a few years the market turns out to be the risky sector. So check the savings account regularly.