India In general, the age of 60 to 65 years is considered suitable for work. However, in the rapidly changing times, getting a job till the age of 60 has become very cumbersome as the work pressure has increased tremendously. If, you are also among those people who want to live a comfortable life by taking retirement not 60 but till the age of 50, then this is not a difficult task. Experts say that if you want to retire early, you should make sure that you earn fast, spend less, and most importantly – save. But keep in mind that without keeping inflation in mind, your plan may not be successful. For example, if you need Rs 5 lakh in a year to meet your family expenses, you will need around Rs 8 lakh after 10 years.
plan well
Let’s say you are 30 years old and want to retire at 50. You have 20 years to build a fund. This amount will meet your expenses for 30-35 years after retirement. Experts say that if a person is retiring at the age of 50, then he should have an amount equal to 30 times the annual expenditure in savings. Now the important question is how will this happen?
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plan for savings like this
If you are in your 30s now, then your annual savings should be around 70 per cent of your total earnings. In this way, even after beating inflation by 10 per cent, you will be able to accumulate expenditure money every year for the two years after retirement. Let’s say that if your annual expenditure is Rs 5 lakh now, then you will have to earn about Rs 16 lakh annually. Only after doing this will you be able to add money equal to the expenses of the two years after retirement.
Keep these things in mind in early retirement planning
- try to save as much as you can
- Do take health insurance, it will save big later
- Create a separate fund for going on holidays after retirement
- Discipline investing and switch to equities for great returns
- Avoid taking new loans, it will affect your savings
- Get rid of wasteful investments and balance the portfolio
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