Simplifying Life Insurance in India

What are you looking for?

Hi There, We are working on our product and launching this soon.

Submit your details and we will notify you once we launch our Product.

Your Name

Phone Number

Date of Birth

What are you looking for?

Guaranteed Income Plan
Guaranteed Pension Plan
Money Back Plan
Single Premium Guaranteed Income Plan

Profession

{{itemType}}

Income Range

{{itemType}}

Company Name

How to Prepare for Retirement Planning in your 30s?

It is never too early to plan for your retirement. When you are in your 30s, you have many responsibilities, including buying a new home and taking care of your family. If you are doing retirement planning in your 30s, you are on the right pathway.

As you earn more in your 30s, it is the perfect time to think and secure the future by planning your retirement. In this article, you will learn the importance and how to prepare for retirement in your 30s.

What is the Importance of Retirement Planning in Your 30s?

Retirement planning will help you in having an ideal lifestyle post-retirement. Planning for retirement in your 30s will help you fulfil your goals and help your family when there is any need for financial assistance.

A retirement plan will cover the medical expenses, and you need not worry about the expenditure. Planning ensures you can achieve the day-to-day lifestyle post-retirement without any monetary dependence.

How to Save Money for Retirement in Your 30s?

Preparing for retirement is how you can secure your future. It refers to financial independence and stability in old age. The following tips below talk about how you can save for retirement in your 30s:

Setting Up a Goal

If you have a rough idea of how much money you require during retirement, you will plan accordingly to save the money. This will give you an idea about the progression towards your ultimate goal. So if you set a goal using your current age, income and retirement contributions, you can save more for your retirement.

Eliminating Unnecessary Expenditure

Getting rid of unnecessary expenses can save a lot. You can do this by maintaining a budget. In this way, you can limit expenses and reduce unnecessary ones. This will allow you to put aside sufficient money for the retirement plan.

Saving the Appraisal

When there is a raise in your pay, try to save the money. If you fulfil your needs in the current pay, saving the raise is a better option for the future. You can transfer the amount to your retirement account to secure your future.

How to Invest Money for Retirement in Your 30s?

Investing is one of the best options for retirement planning in your 30s. Investing all your savings in one stock will include huge risk, and there is less chance of getting higher returns. However, if you invest in various financial instruments at the same time, it lowers your risk and increases the chances of getting higher returns. There are various financial instruments that you can opt for while planning your retirement. Some of them are:

1. Equity Fund

It is one of the most preferred options for retirement planning. This investment provides a higher rate of return and is ideal for long-term investments. SEBI regulates the amount invested in stocks to ensure your money and your ownership in the company are secure.

2. Bonds

Bonds are one of the popular investment options for planning retirement. It is a secured debt where the holder pays the principal amount to buy bonds from the issuer. After that, the issuer will pay interest at regular intervals to the holder and pay the principal amount on the maturity date. The interest rate is usually higher, and no tax is charged when investing in bonds

3. Real Estate

It is one of the best options for long-term investment. You can invest in houses or shops to earn a high return on real estate. However, consider a good location before investing, as it is the key point for any real estate investment. Thereby upon retirement, you can utilise the returns.

4. National Pension Scheme

National Pension Scheme (NPS) is a scheme launched by the Government of India to give social security to working people. Whether working in a public or private organisation, you can avail this scheme. Furthermore, this scheme is also available for people working in the unorganized sector.

Important Calculators that will Help you Plan Your Retirement

NPS Calculator

SIP Calculator

Lumpsum Calculator

Retirement Calculator

ULIP Calculator

RD Calculator

How Much Should You Save for Retirement in Your 30s?

Enjoying a lavish lifestyle post-retirement is a dream of every individual. You need an adequate amount of money in your account to achieve this dream. Starting early savings will benefit you as you will have more time to save.

Furthermore, if you are retiring at around 60, it is recommended that you should have around one year's salary in your savings account in your 30s. You can invest or save around 15% of your yearly income to be at par with the standard savings for your age.

What is the Example of Retirement Planning in Your 30s?

The following example explains how to plan for retirement in your 30s:

Current Age: 35 Years
Desired Retirement Age: 65 Years
Life Expectancy: 80 Years
Monthly Income Required in Retirement Years: ₹30,000
Expected Inflation Rate: 6%
Expected Return On Investment (Pre-Retirement): 15%
Expected Return On Investment (Post-Retirement): 6%
Annual Income Required Immediately After Retirement: ₹20,67,657
Additional Retirement Fund Which Needs to be Accumulated: ₹24,39,372
Monthly Savings Required to Accumulate the Fund: ₹352

Disclaimer: The information above is derived using a retirement calculator.

Retirement planning in your 30s is a good option when you find the right mixture of plans. It makes your future secure and independent. Proper planning will ensure you live comfortably without compromising your living standards while not working.

FAQs about Retirement Planning in Your 30s

Why should you invest in the National Pension Scheme (NPS) for retirement planning in your 30s?

Investing in the National Pension Scheme for retirement planning in your 30s will give you the option to switch from one investment option to another as it is flexible. Additionally, you can contribute as low as ₹ 1000 every year towards this scheme.

Is life insurance an important factor while doing retirement planning in your 30s?

Yes, life insurance is an important factor while doing retirement planning. Insurance ensures that you and your family do not face any financial issues post-retirement. It covers emergencies and unplanned expenses in case of a sudden need.

What are the various pension plans available in India for retirement planning in your 30s?

Apart from National Pension Scheme (NPS), you can avail pension or retirement plans from various insurance companies and financial institutions. You can even get retirement plan options from an employer, like Employee Provident Fund or retirement gratuity.

How much term insurance coverage should I have for retirement security?

As a general rule, term insurance coverage should ideally be 10 to 15 times your annual income. This amount helps cover liabilities, daily expenses, and future financial goals for your family.

Can health insurance be part of my retirement plan?

Absolutely. Health insurance is a critical part of retirement planning. It ensures that your retirement savings are preserved for lifestyle and long-term goals, not spent on sudden medical bills. The earlier you buy, the more affordable and comprehensive the coverage.

Important Articles about Retirement Planning

Retirement Benefits for NPS Employees

Managing Wealth in Retirement

What to Do With Retirement Money

Retirement Planning in Your 60s

How to Save Money for Retirement

Tips for Happy Life After Retirement

Retirement Planning in Your 20s: How to Plan, Save & Invest?

Mutual Funds for Retirement Planning

Benefits of Retirement Planning

Retirement Planning in your 20s

How to Save Money for Retirement