Close your eyes and imagine a time when you are no longer working. What do you see? Do you see yourself relaxing, spending your time peacefully, visiting your children or grandchildren and vacationing? That stage in your life, my friends, when you stop working and live on your accumulated savings is called retirement. It is a stage for which you need to save enough, so you can lead the life you just imagined. Running your house Medical expenses Our needs and your family's Recreational activities and vacations Even after your retirement, you’ll need enough money for these. This is possible if you EARN your freedom - freedom from financial constraints and worries - right from the early stages of your working life. Which means, it’s time for you to take Early Action for Retirement Needs. Are you ready? Planning your retirement Planning your retirement means saving enough to ensure that you can continue to meet your needs for the rest of your life. In other words, it is the process of determining how much money you will require to live comfortably after your retirement. For that, you will also have to figure out how much time is left before you reach your golden years. So let’s take a guess at what you think the average life expectancy today is. Anyone? Well, the fact is that most of you will live for many years after you retire because life expectancy has increased with healthcare advancements. In India, the average person today goes on to live more than 20 years after retiring at 60. But without proper planning, you may end up with lower retirement wealth. Which means, you would not have enough money to manage your monthly expenses. Such a situation could force you to seek re-employment. However, if you plan now, the chances of running out of money later are fewer. So plan your retirement today and EARN your freedom tomorrow! Pension for everyone So friends, do you know what your best bet in retirement planning is? The answer is much simpler than you thought. It’s one word — pension. Yes, pension is your bread and butter for retirement years. Upon retirement, you can rest easy because you will have enough funds to enjoy a comfortable life. With a pension, you receive a guaranteed, fixed monthly amount Pension comes from a pool of money set aside for the years you don’t work Pension lets you take care of your needs and dreams after retirement. But do you think pensions are only for government employees? Or for your peers employed in private companies? It would be a mistake to think like that. My dear friends, everyone can get a pension - even you. Start early, save more When do you think you should start planning for your retirement? NOW. Yes, you heard it right. The earlier you start, the greater retirement wealth (read peace of mind) you will have in your golden years. You can plan for your retirement at any age between 18 and 70 years Let me give you an example. Your current age = 25 years Value of monthly expenses = ₹ 10,000 Your retirement age = 60 years Age till which you want to plan = 80 years Assumptions Inflation = 5% Return on pension investment = 10% Here are some scenarios I have put up for different ages. You will find under each the inflation-adjusted value of monthly expenses, amount needed to be invested on monthly basis and the required retirement wealth at 60 years. Start early and save for your pension over many years. That way, you’ll have comfortable later years - even if you decide to retire early. Moneyram Mantra Take Early Action for Retirement Needs and EARN your freedom from financial constraints. You can get a pension even if you are not a government or private company employee. Start saving early so that you get many years to accumulate your retirement wealth and enjoy the effect of compounding. By doing so, you’ll be comfortable in your retired life. Open your NPS account online https://npstrust.org.in/