Why is Retirement Planning important even in your 20s

Mindset in the Early 20s – 

Why should I plan for Retirement?

Amidst all of this, planning and investing for my retirement at this stage seems antithetical and premature, right?

Reality –

I should start my Financial Planning for Retirement…

Growing old is inevitable. Furthermore, lifespan keeps increasing with medical science constantly making advances. All these factors are making it increasingly common for retirees to find themselves supporting their aging parents, even as their own income streams diminish.

To tackle this, investing a certain percentage periodically from your salary – a Systematic Investment Plan (SIP) can provide the required impetus to your final corpus. Starting early gives a head start to your investment’s compounding potential by cutting through the short-term volatility in markets, benefitting investors in the long run.

Past performance may or may not be sustained in future and is not a guarantee of any future returns

Inferences from the illustration

• Delay of 10 years - Reduction in the value of investment by 3.31 crore
• If Shyam wants to achieve Ram’s final corpus in 25 years, he would have to invest over thrice the amount every month – ₹31,370!

So, why hold yourself back from thinking long term? Start planning at the onset for a smoother life after retirement!

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.