- If we live longer, we will either end up leaving our careers or opt for a less intensive job or stop working. The companies included pension plans in their compensation package and employees used to receive a percentage of their salary as pension for the rest of their life. This social security benefit used to be enough to offset the cost of living so that a retired person could enjoy his retirement without any financial hardship. But with the high inflationary trends in the current days this does not hold to be true anymore.
- Instead, it is today the individual responsibility to create for him or herself a financially comfortable retired life. How to go about it?
- Make a plan for retirement. Saving for retirement canfigure out to be little difficult at first.
- Decide what you need to do to create a large nest of money which can take of your retirement needs.
- Determine your net worth ie the value of assets minus the value of your liabilities. If the net worth is negative start figuring out as to what you can do to make it possitive.
- First decide what you will need to contribute today to reach your retirement goal.
- Next you need to create a budget of your recurring expenses and consider your saving contribution as a monthly expense.
- Compare the various plans available in the market. Do undertake a cost benefit analysis before deciding the plan.
- Select the right plan and start investing regularly for financial freedom during your retired life.
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