How to successfully plan for retirement?

For many, forming a retirement fund seems a distant goal that can be fulfilled in the later stages of life. However, planning a financially secured post-retirement investment is a vital financial goal, which must not be ignored. Challenges like rising healthcare expenditures, higher life expectancy, etc., may wipe off your retirement savings, if planned inappropriately. Hence, ensuring to create a successful retirement plan and beginning with the retirement investment at the earliest is very important. Discussed here are stepwise measures to attain your retirement fund corpus.

  • Start retirement investing as early as possible

The sooner you start with your retirement fund investment, the lesser contribution you require to make to attain your retirement goal. Beginning your retirement investments early also helps imbibe financial discipline and allows you to make the most out of the power of compounding. Owing to the compounding effect, the gains earned on investment begin generating returns on their own, which gradually grows into a bigger investment corpus over the long term. For instance, a 24-year-old would need to make a month-on-month mutual fund SIP investment of Rs 5,000 at an assumed annualised return rate of 13 per cent per annum to create a retirement fund of Rs 4.8 crore by the time he reaches the age of 60. However, for a 50-year-old, to create the same retirement fund at the same return rate over a period of 10 years, a monthly SIP of Rs 1.99 lakh is required. You can easily compute your retirement fund requirement and your monthly contribution to SIP mutual fund using an online retirement calculator. This calculator computes the figures instantly.

  • Factor in inflation

When calculating your retirement fund, make sure to factor in inflation. As inflation reduces the purchasing power of money, not factoring it makes you save extremely less than what you require to create a successful retirement life. Also, it enhances your chances of witnessing monetary shortfalls in your post-retirement life and may even force you to work after retirement.

  • Buy sufficient health insurance

Given the rise in medical expenditures, the need to buy adequate medical cover is a must. As your current age is an important parameter determining your health policy’s premium, buying a health policy later means a higher premium. Moreover, health insurances usually have a waiting period for specific diseases, or treatments or in the case you suffer any pre-existing illness. Purchasing a health cover early allows you to meet the policy’s waiting period much before the chances of suffering such diseases or witnessing adverse scenarios due to any preexisting conditions.

  • Invest in equity to create a higher retirement fund

Creating a post-retirement corpus is an important long-term financial goal that spans more than a decade. Equity is one of the crucial asset classes for attaining your long-term life goal as it can allow you to overcome returns on fixed-income instruments and inflation over a long-time period by a wide margin.


Retirement planning is necessary for accumulating an adequate retirement fund for your golden days. So, ensure to begin with your retirement plan as early as possible, factor in inflation while preparing a retirement plan, opt for the SIP mode to invest in equity funds and purchase an adequate health insurance policy. Factoring in all these tips can help you to form a sufficient retirement corpus.