Start Retirement Planning Today: Know How Much You Need and Where to Invest

New Delhi, India — May 5, 2025: Whether you’re just starting your career or approaching the end of it, retirement planning is a financial priority that should not be delayed. With rising inflation and growing life expectancy, ensuring a steady income stream after retirement is essential for a stress-free future.

Why Retirement Planning Is Crucial

During our working years, regular income covers our daily expenses, travel, healthcare, and other lifestyle needs. However, post-retirement, this regular flow of income stops — but the expenses do not. This is where strategic retirement planning helps.

Start by asking: What kind of life do I want after retirement?
Whether it’s a simple lifestyle or one that includes travel and hobbies, your retirement fund should align with your aspirations.

How Much Money Do You Need After Retirement?

A general rule of thumb is that you should aim to replace 70% to 80% of your pre-retirement income to maintain a comfortable lifestyle. Also, take inflation into account — the cost of living in the future will be higher than it is today.

For instance, if your current monthly expense is ₹50,000, you might need ₹1,00,000 or more per month after 25 years, depending on inflation and lifestyle choices.

To estimate accurately, calculate:

• Your current monthly expenses

• Years left until retirement

• Expected inflation rate

• Life expectancy after retirement

Top Investment Options for Retirement

To build a robust retirement corpus, consistent investment in secure and growth-oriented instruments is key.

NPS (National Pension System)
A government-backed retirement scheme offering tax benefits under Section 80C and 80CCD, NPS helps build a sizable corpus over time with monthly annuity options post-retirement.

Pension Plans by Insurance Companies
These plans offer guaranteed monthly income post-retirement and are ideal for risk-averse individuals seeking financial stability.

Mutual Funds
For those open to moderate risk, Systematic Investment Plans (SIPs) in mutual funds offer higher returns over the long term. As retirement nears, shift to debt or hybrid funds to reduce market risk.

Diversifying across these instruments ensures steady growth, capital safety, and tax efficiency.

Conclusion:
The earlier you start, the better your chances of retiring with peace of mind. By understanding your future needs and investing in the right instruments today, you can secure a financially independent life after retirement.