Determine how much you need to save
Select various avenues where you can invest
Considerations for determining retirement fund
Streamline expenses with financial planning
An early retirement is a big decision, which impacts several different facets of your life. Here’s a look at the different factors you should consider, when opting for an early retirement:
Retiring early means you have less time for savings. You need to plan early, and save more. To ensure more savings, it is important to cut down other costs and explore more avenues of income for greater savings.
Put your money to work for you, by maintaining a diverse investment portfolio that boosts your savings.
When you are working and saving to retire early, your need is to earn more returns on your investment. Equity class will be your preferred choice with relatively less amount of debts.
Retirement brings down your risk-taking abilities, which is why it is better to opt for investment avenues like company fixed deposits. Get assured returns with low risks and enjoy greater flexibility to grow your savings, as per your financial goals.
Set a target to determine the amount of money you need, before you can retire. When setting a target, here’s what you need to consider:
Regular expenses for paying your bills
No regular paycheques, to fund your expenses
Increasing average life expectancy
Increasing inflation rates
Setting aside some funds for emergencies
It is also important to consider your financial goals, when determining your total retirement funds.
Additional Read: Top 4 Benefits Of An Early Retirement
Retirement Plan by Bajaj Finserv
When planning an early retirement, make sure you evaluate your vital expenses and work towards saving more. Adjusting towards a post-retirement lifestyle with no regular income stream, becomes easier when you have planned expenses. You can also set aside some funds to cater to emergencies and unforeseen circumstances.
Make sure your plans are in sync with your financial goals, so that you can ensure a smooth and hassle-free life post retirement. Early retirement can be a bliss, if you take the right investment decisions.
DISCLAIMER: The mentioned fixed deposit interest rates are indicative only, and may be subject to change periodically. Please check the interest rates on our website.