Understanding the Retirement Planning - Part 1

When you are young, it is extremely difficult to think about retirement planning. Young people are busy starting a career, starting a family or settling in, so it is understandable that they are reluctant to talk about retirement planning so early in life. Life goes by so quickly though. Every year you waste putting off retirement planning means adding a year that robs you of  early retirement and enjoying the golden years. Therefore, this module will help you as a young person to get started this conversation about your future. One of your life goals  should be to retire through a financially comfortable and stress-free lifestyle with financial freedom and security. Retirement provision is the crucial task for this goal, because you decide how you  live when you are old and no longer want or can work. 

There are  a number of factors to consider: how old you expect to be when you retire, how much money you  need to cover  living expenses, and your other post-retirement plans.In general, retirement planning are planning their finances for  life after stopping up to date.You can choose to invest yourself with or without the help of financial planners. Your attitudes, knowledge and information inherently influence your behavior regarding retirement planning. Attitudes include how you take responsibility and tolerate financial risk. If you're more likely to take financial responsibility for your future, you're more likely to contribute to retirement savings.To fully invest in your retirement, you need to acquire financial and numeracy skills as a young person.

Retirement is secure and you  live on after retirement. Therefore, the costs will exist even at such times. Both expected and unexpected outputs will occur. Expected expenses include household expenses, voluntary expenses, children's school and college fees, EMI payments, saving and investing for your retirement, etc. Unexpected expenses include medical emergencies, setting up a security fund to compensate for job loss, etc.Therefore, you need a retirement plan to cover these expenses.