Retirement planning typically involves determining how much money one needs to save up for their retirement and exploring ways to achieve that goal. Kavan Choksi mentions that identifying income sources, managing assets and risk, implementing a savings program, as well as sizing up expenses, all of it can be a part of retirement planning. One must properly estimate their future cash flows to understand whether a retirement income goal is possible or not with their current financial plans, and take the necessary steps to get closer to their objective.
Kavan Choksi offers an overview of retirement planning
Retirement planning is what people do to prepare for life after they cease to have any regular income from work. However, this planning is not limited to just finances, but actually matters to all aspects of life. The non-financial aspects include varying lifestyle choices like where to live after retirement and how to spend the post-retirement years, among other things. Maintaining a holistic approach to retirement planning takes multiple factors into account. Moreover, the focus one puts on retirement planning does change and evolve based on the varied stages of life. For instance, retirement planning is simply about setting enough money aside for retirement when a person is young and has just started to work. However, by the middle of their career, this planning can also include setting particular income or asset targets and taking proactive steps to achieve them. Once a person reaches their retirement age, they would go from accumulating assets to leveraging them to lead a comfortable life.
Financial experts like Kavan Choksi point out that good retirement planning is extremely important to put away and accumulate enough money for consistent lifestyle post retirement. No person would want to work till the very end phase of life. Old after a certain age one can work part-time or take up occasional gigs, which will not be enough to sustain the lifestyle they desire. Moreover, social security benefits are often not enough to meet the expenses after retirement. Hence, people should have a viable plan that helps them to stay financially stable after retirement. While people can start planning for the retirement at any point in time, it is better to start early.
The exact amount of money one must gather to retire comfortably would be highly personal. While obviously every person would want to save up as much as they can, it is also prudent to consider all their expenses. Costs related to vehicle/transportation, food, clothing, health insurance, and housing especially has to be taken into account. Moreover, as people will have more free time on their hands after retirement, the costs of entertainment and travel should also be factored in. It is not easy to come up with a concrete figure while creating retirement strategies, but it still is vital to have a reasonable estimate so there are no surprises later on. While retirement can seem to be a bit intimidating at the start, it is not actually too complex. In fact, it is as simple as setting a certain amount of money aside every month.
