How to Prepare for Retirement Planning in your 30s?

source: indiatimes

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.

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.

Setting Up a Goal

Eliminating Unnecessary Expenditure

Saving the Appraisal

1. Equity Fund

2. 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.

Read More: How to Create Wealth Through Real Estate

4. National Pension Scheme

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.

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.