Have you ever paused and wondered...
"What will life look like when I stop working?
Will you be travelling the world, living peacefully in your home, or supporting your children’s dreams? Most of us think about these things, but very few actually plan for them in time.
Retirement planning often takes a backseat in our busy lives. We prioritise today’s needs and delay thinking about tomorrow.
Whether you’re in your 30s and just starting to save or in your 50s and wondering if you’ve saved enough, ACE Financial Services which are a reliable retirement planning services in Kolkata can help you with this.
Now let’s break it down stage by stage so you know exactly what to do and when.
Why Retirement Planning is Important?
Before we dive into the stages, let’s understand why retirement planning matters:
You won’t have a monthly salary after retirement.
Medical costs are increasing every year.
You’ll still need money for daily expenses, travel, gifts, and emergencies.
Depending solely on children or pension may not be enough.
With proper planning, you can retire with financial peace of mind.
Stage 1: Early Career Stage (Ages 20–35)
This is when most people start earning their first salary. Retirement may feel like a faraway thought, but this is the best time to start saving.
What You Should Do:
Start early: Even saving small amounts can grow big with the power of compounding.
Invest in long-term options: Mutual funds, NPS, and recurring deposits can be good starting points.
Create an emergency fund: Aim to save 3–6 months of your living expenses.
Stage 2: Mid-Career Stage (Ages 36–50)
This stage often brings higher income but also more responsibilities, home loans, kids’ education, and other family needs.
What You Should Do:
Review your retirement goals: Are you saving enough?
Diversify your investments: Balance between equity (for growth) and debt (for safety).
Maximise retirement contributions: Make full use of schemes like EPF, PPF, and tax-saving options under Section 80C.
This is also the perfect stage to explore retirement planning in Kolkata, as there are many financial professionals who can help you create a long-term plan based on your lifestyle and future needs.
Stage 3: Pre-Retirement Stage (Ages 51–60)
You’re now inching closer to retirement. It’s time to shift focus from growing wealth to protecting it.
What You Should Do:
Reduce high-risk investments: Switch to safer instruments like fixed deposits or Senior Citizen Saving Schemes (SCSS).
Plan your healthcare needs: Consider a good health insurance plan if not already taken.
Estimate post-retirement expenses: Think about monthly bills, medical costs, travel, and lifestyle expenses.
Stage 4: Retirement Stage (Age 60 and Beyond)
This is the stage where you stop working actively and start using your retirement savings. The key here is to generate regular income and manage expenses smartly.
What You Should Do:
Opt for income-generating investments like annuity plans or dividend-paying funds.
Keep an emergency fund for medical or personal expenses.
Revisit your plan every year to make changes if needed.
Remember, retirement doesn't mean stopping, it means starting a new chapter, on your terms.
Step-by-Step Guide to Plan for Retirement
Step 1: Decide Your Retirement Age
Set a target age, it could be 55, 60, or even 65.
Step 2: Define Your Post-Retirement Lifestyle
Do you want to travel? Support grandkids? Start a business? Know your goals.
Step 3: Calculate Your Monthly Needs
Account for living costs, medical care, and leisure.
Step 4: Factor in Inflation
Expenses will grow over the years, plan accordingly.
Step 5: Evaluate Current Savings
Know how much you have to do today and what you should aim for.
Step 6: Calculate Required Monthly Investment
Use online calculators or consult a professional to get an accurate number.
Step 7: Choose the Right Investment Tools
Mutual funds, fixed deposits, bonds—pick what matches your risk profile.
Step 8: Review Your Plan Regularly
Adjust as per your income, goals, and market conditions.
Top Retirement Investment Options You Should Know
Let’s look at some popular and beginner-friendly investment options in India that you can explore for retirement:
Public Provident Fund (PPF)
15-year lock-in, but offers tax-free returns.
Great for disciplined long-term savings.
Employee Provident Fund (EPF)
Mandatory for salaried individuals in certain organisations.
Employer contributions add to your savings.
Mutual Funds (Especially SIPs)
Equity mutual funds offer long-term growth.
SIPs are great for monthly savings discipline.
Fixed Deposits Bonds
Safer options for those nearing retirement.
Lower returns but high stability.
Conclusion:
No matter your age or income, one thing is clear, starting early is always better. The longer your money stays invested, the more it grows.nRetirement may seem far away, but it comes sooner than we expect. Start small, stay consistent, and seek help if you’re unsure. Your future self will thank you.
