Every one need to retire one day. Means, need to survive a period of life without earning. Are you ready for those days ? What amount you need to save for golden days to make those days really glitter ?
We are in the era of defined contribution. Where we can confirm our contribution towards retirement planning. But we don’t get assurance of the return that we will exactly get. So, our contribution, expectation on return and expected longevity need to be carefully analysed before investment. And periodic review and required alteration is essential part of any successful goal based investing. So, this is a continuous process until you reach your target.
For instance, Mr. X is a 30 years old person. He planned to retire at the age 60. His expectation of retired life is 30 years, i.e. his expected longevity is 90 years. Now, first important part of the planning is that what is the amount he will need at the age of 60 to live life comfortably. Second is how much he should invest regularly to achieve the targeted value at the age of 60.
These are the core issue one should consider seriously on one’s retirement planning.