Frontpage Insights: 57 percent of urban Indians worry that their retirement savings will run out in 10 years, proper planning required

Planning for retirement while young may seem strange to many, but it has significant benefits. When a person starts earning, his focus is usually not on preparing for long-term goals but on meeting immediate financial needs. A recent survey on retirement revealed that 57 percent of urban Indians worry that their retirement savings will run out within 10 years, and only 24 percent are confident that their savings will last until the end.

In addition, 31 percent are unsure of how much money they will need to maintain their current lifestyle after retirement. This shows that there is a great need for better retirement planning and awareness. According to Ranbir Singh Dhariwal, CEO, Max Life Pension Fund Management, starting retirement planning at an early age is essential to achieve financial security.

Retirement may seem far away now, but financial planning can pay significant dividends in the future. Retirement planning is an important aspect of a sound financial strategy that gives one time to face potential challenges that may arise in the future.

Strategies for achieving financial security in retirement 1. Lay the foundation: Successful retirement planning begins with setting goals. One should consider important factors like estimated age of retirement which is usually around 60 years but may be different in case of labor based work or contract work. 2. Assess Retirement Needs: Assessing retirement needs requires careful analysis of several important factors. The first is to estimate your future expenses, such as health, household and recreational expenses. 3. Need for early initiation and persistence : Early initiation and persistence are essential for effective retirement planning. Starting with a 20-year investment can provide wealth growth. 4. Financial products designed for retirement: Financial products essential for building a retirement fund include guaranteed income plans and NPS. A guaranteed income plan provides a steady stream of income during retirement which provides financial stability. 5. Benefit of company-sponsored retirement plans : Employer-sponsored retirement plans like EPF, VPF and corporate NPA solutions provide valuable options for accumulating retirement savings.