RETIREMENT PLANNING Plan your retirement, maintain your lifestyle

The process of determining retirement income goals and the actions and decisions necessary to achieve those goals.

RETIREMENT PLANNING

COMMAN MAN AT THE TIME OF RETIREMENT

COMMAN MAN AT THE TIME OF RETIREMENT

ASSETS 1 Residential House Property - For Own Living

Asset 2 Another House Property - Let Out

(Fetching Some Minimal Amount of Rent that he Can’t Sell as its only the incoming source of investment)

Asset 3 One more House Property ( - Let Out ( Same conditions as mentioned above)

Asset 4 Fixed Deposit in Bank - 70 % of investable surplus will be in Fixed Deposit

Asset 5 Retirement Benefits PF, Gratuity and other retirement benefits

Now the Real worry…

1. Increased inflated cost of living

2. Rising Medical Expenses

3. Shortage of Liquid Funds to maintain the pre

retirement inflow

4. Want security of Capital as Risk Appetite is very low

Why Plan For Retirement?

• Uncertainty of Social Security and Pension Benefits

• Unforeseen Medical Expenses

• Estate Planning

• The Flexibility to Deal With Changes

STEP 1. SETTING YOUR RETIREMENT GOALS

STEP 2.  ASSESSING YOUR CURRENT FINANCIAL POSITION

STEP 3.  IDENTIFYING RETIREMENT INCOME SOURCES

STEP 4 CALCULATE THE GAP

STEP 5.  INVESTING YOUR RETIREMENT ASSETS

STEP 6.  MANAGING YOUR RETIREMENT INCOME

STEP 7.  MONITORING YOUR RETIREMENT ASSETS

PROCESS

Decide the age at which you want to retire.

Decide the annual income you'll need for your retirement years.

Add up the current market value of all your savings and investments.

Determine a realistic annualized rate of return  (net of inflation) on your investments. 

If you have a company pension plan, obtain an estimate of its value from your plan provider.

Calculate the gap , how much amount more required to fulfill my goal

How Much Will I Need?

Pre Retirement – Accumulation Phase

Debt

EquityContingency Alternate

Chart Title

Post Retirement – Distribution Phase

Where will my money come from

Employment income

Current savings

Other sources

Building A Nest Egg

Saving

Govt. Sponsored vehicles

NPS

OTHER SOURCES

Pension

plans

Building A Nest Egg

launched by Government of India

Regulated by : The Pension Fund Regulatory and Development Authority (PFRDA)

Fund managed by professional Pension Fund Managers& Central Recordkeeping Agency ( PFMs & CRA)

National Pension Scheme

NPS

Tier –I account Not premature

Withdrawal

Tier –II account

Withdrawal

E Class Invest in equity market instruments

G Class Invest in Govt Securities

C Class invest in fixed income securities

Investment options In NPS

Class Till the age 35 year

At age 55 year

E 50% 10%

G 30% 10%

C 20% 80%

Asset Allocation

Retirement planning helps you maintain your desired lifestyle during old age

It provides financial security to you and your dependents

cover for any contingencies arising from uncertain events.

BENEFITS OF RETIREMENT PLANNING

CONCLUSION

BEING RICH IS NOT A

RETIREMENT PLAN