This Presentation will provide you all the information you need to know about Retirement Planning

3. What is retirement?
 In simple words, 'Retirement' is when a person resigns from
work as he/she has reached the age of 60 years or even more.
 After working hard and slogging, just to make ends meet for
their families and give them a comfortable life, retirement is
what most people wait for.
 To live a happy retired life, you have to make your hard earned
money work for you.

4. How should you plan for retirement?
 Retirement planning is nothing but using your money
earned, to provide funds for you at retirement.
 At retirement, you may have specific goals that you need to
achieve.
 You may want to take an expensive vacation after
retirement.
So for all of the above, planning is required. If you are not
sure yourself, then seek an adviser's help.

5. Have you planned for your retirement?
 You'll be shocked to know the corpus, you'll require at
retirement. People think that as they get older, their salary will
increase too, so they do not need to plan for retirement.
 What they don't realize is that, after retirement, they wont be
working.
 Inflation and living longer are the 2 main factors that you
need to keep in mind, because it could affect your retirement
corpus majorly.

6. Pick your retirement corpus.
Let us see the different retirement baskets required, as per the
different household expenses
 Monthly expenses at retirement age 60 years are Rs. 20000/-,
Rs. 40000/-, Rs. 60000/- and Rs. 80000/-
 Let us assume inflation at 5%,
 Rate at which you are going to invest the corpus will be 8%
 Need it for 30 years of retirement.
 Assume the current age to be 30 years.

7. MONTHLY EXPENSES FUTURE VALUE ( AT
AGE 60, RETIREMENT
CORPUS)
PRESENT VALUE (AT
AGE 30, INVESTMENT
NEEDED )
Rs. 20000/- 4866019 483572
Rs. 40000/- 9732039 967144
Rs. 60000/- 14598058 1450716
Rs. 80000/- 19464077 1934288

8. Explanation
 All these monthly expense values are taken at the time of
retirement.
 The future value of each expense is inflation adjusted. It
indicates the total corpus required for 30 years.
 The present value indicates the investment required today, to
achieve the desired retirement corpus.

9. How to pick your investment avenues?
Since retirement is a goal that you cannot compromise on, you have to
plan it properly:
 If you are young, you have the capacity to take risks, so you can start
of with SIPs.
 As you grow older, i.e. is middle aged, you can shift it to a balanced
fund.
 When you have 10 or 5 years left to retirement, shift the corpus to
debt. That way you are not compromising the funds for your goal.

10. What are your investment options?
 Public Provident Fund: This fund has a minimum deposit of Rs.
500/- and a maximum of Rs 150000/-. The investment made,
income earned and maturity amount is tax free. It has a 15
year lock in period, with an extension for a block of 5 years.
The current rate is 8.7%. Partial withdrawal is allowed in the
7th year, under certain conditions.

11.  Systematic Investment Plans in equity funds: commonly know
as SIPs. It is a good way of starting to save for retirement, due
to its Power of Compounding. The earlier you start with SIPs
and the longer it is kept, the better returns it gives. After a
year, the income earned is tax free.
 Debt funds: These are the safer options available, as they are
less risky compared to equity. These investments provide fixed
income, that is why they carry less risk. Just before retirement,
you can shift your investments to debt funds, to keep them
safe.

12.  Annuity plans: This is another good option available. You can
invest a lump sum and receive a monthly, quarterly or yearly
annuity. So you have money coming in to take care of your
needs. There are different types of annuity plans, like fixed
annuity, variable annuity, etc.
 Senior Citizen Saving Scheme: Any citizen of age years or more
can open this account. You can open an individual account or a
joint account with your spouse. Minimum amount is Rs.
1000/- and maximum is Rs. 1500000/-. It has a lock in for 5
years and can be extended for a period of 3 years. The interest
rate is currently at 9.3%. Premature withdrawal is allowed, but
subject to conditions.

13. Conclusion
Though people may think that retirement is not
something to think about, when you've just started
working, but I'm sure after looking at the figures required,
you're having second thoughts. Well you should! Because
you have to face the fact, that you can't work all your life.
You are going to reach the retirement stage, one day or
the other. So plan well and live a happy retired life.

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