Living richly is one thing- but have you planned well enough to carry that wealth into your later years?

Retiring rich isn't the most difficult thing in the world - given you know what to do, and when. What’s the secret? Start early. You cannot work forever, and moreover, with increasing life expectancy, the problematic issue of retreating into an unfunded and unplanned retirement in your twilight years is something that needs to be avoided.  Though previously the key to this was saving, today the key is investing.

Though seemingly complex and even possibly troublesome, investment and retirement planning chiefly revolves around a systematic and sequential series of small investments which should help you achieve your target rather comfortably. Yet, In India, the situation is a tad bit troubling.

As of 2016, 38% of salaried workers globally do not have a proper retirement plan. According to a 2016 survey by AEGON, although the worldwide retirement readiness rate fell from 5.9% in 2015 to 5.8% in 2016, in India it increased from 7% to 7.3% in 2016. Despite such, a vast majority of the country remain untouched by any functioning pension schemes. However, endeavours such as the 'National Pension Scheme - Retirement Plan for All' are working towards improving conditions in the present day scenario.

The shrinking of families due to increasing geographical mobility of labour only increases the likelihood of children's separation from parents. Additionally, with a volatile social scenario that has led to the popularisation of nuclear families over joint families, it is probable that this trend is going to continue. Moreover, the average Indian starts planning for retirement in their 40s. And that too, among the people with retirement plans, only 59% (the highest in this category) make sure to save for retirement on a regular basis.

Consider this: Many couples get unduly excited when they are told by their financial advisor that investing Rs.10, 000 in a monthly SIP equity fund can multiply their money to almost a crore in just a 20-year tenure. However, what they fail to recognize immediately is that given the market fluctuations and current expenditure patterns that will only be one-fourth of their actual requirement. With such notions in place, it was no surprise when India’s per capita retirement assets was a meagre 15.1% of the GDP as compared to other countries like Germany (21%) and USA (78.9%).

As such, it is imperative that you peruse all the different kinds of options, such as mutual funds, pension schemes, stocks and investment in other hybrid products in order to realize what fits your bill the best. Investing correctly today is a much better option than depending on someone else for retirement plans.

If you need help choosing the right plan, here are Types Of Pension Plans And Their Tax Benefits.