Retirement may feel far away, but planning early makes a big difference. Many families think retirement planning begins at age 40 or 50, but even small steps taken earlier can create meaningful results.

This guide breaks down retirement planning into simple stages so anyone can start with confidence.

1. Understand Your Future Lifestyle Needs

Your retirement goals depend on how you want to live. Some people want a quiet lifestyle, others want to travel, and some may continue part-time work.

A good starting point is estimating your monthly expenses in retirement. Consider living costs, medical expenses, hobbies, and family responsibilities.

Action Step:
Write down an approximate monthly number you think you will need at age 60.

2. Account for Inflation

Inflation slowly increases the cost of living. What costs Rs. 40,000 per month today might cost much more in 20 years.

This is why simply saving money is not enough. Your investments should grow faster than inflation to protect your future lifestyle.

Simple Example:

If your current expenses are Rs. 40,000 per month, they may double in 15 to 18 years due to inflation.

3. Begin Investing With a Long Term Mindset

Retirement planning works best with long term investments. This includes options such as:

• Mutual fund SIPs
• Equity investments for long term growth
• Government backed retirement schemes
• Balanced or hybrid investment options

The longer your money stays invested, the more benefit you get from compounding.

Action Step:
Start with an amount that is comfortable. The goal is consistency, not size.

4. Estimate Your Retirement Corpus

A retirement corpus is the total amount you need at the time you stop working. While calculators are helpful, a simple rule is to save enough to cover 20 to 25 years of expenses.

For example, if your retirement expenses are estimated at Rs. 60,000 per month, you will need a significant corpus to sustain this lifestyle without stress.

5. Review Your Plan Every Year

Retirement planning is not something you do once and forget. Review your investments yearly and update them as your goals and responsibilities change.

A simple annual review helps keep your plan aligned with your evolving life.

Conclusion

Retirement planning does not require perfect timing. It requires small, consistent steps taken with a clear understanding of your future needs. Whether you have already started or are planning to begin today, the most important step is to move forward.

To learn more about building a personalised retirement roadmap, feel free to explore our resources or schedule a consultation.

This article is for educational purposes only and is not financial advice.