Why Financial Planning is Needed?

Everyone wishes to have a comfortable retired life but without adequate planning will it be possible for your wish to come true? Probably not. Working span and post retirement span of a person is almost equal these days. When a person is nearing his retirement age he starts to look at about his achievements of various goals.Make retirement also one of your goals then why not start thinking about your retirement at the earliest and be proud of your decision of savings at an early age for a corpus to accumulate.

These are some important reasons to plan for retirement. Every person has a need to plan for his own retirement. Priorities may vary from person to person.

Inflation :

Inflation diminishes the purchasing power of money; over a period of time you will have to pay more money for the same goods. Today we might be are in a position to afford the goods and services we need as we are able and earning. Will we still be able to pay for them when we have retired and stopped earning? The simple answer is "yes", if we plan for our retirement properly & in time.

Rising cost of medical services :

This is another reason. At every stage of our life we need medical attention. As the years go by, it becomes a challenge to provide for rising medical costs. As life's expectancy increases, rising medical costs appear even more daunting. A lot of uncertainty is removed if one plans for this properly, by taking the right investment decisions for our medical treatments.

Breakdown of joint family system :

The need for retirement planning is increasing as retired people can no longer depend on their children for their financial needs. Most elderly people have to live independently on their own and hence they need to plan for retirement. Therefore, financial independence becomes critical.

Increase in longevity :

Life expectancy is increasing thanks to medical advancement.Most diseases are diagnosed in time and treatments are also available; the need for proper planning, if not by one self, can be done it with the help of a financial advisors. It's truly said our work span and our retirement span are the same so it's essential that we plan it accordingly, where we don't have to compromise with our standard of living at our retirement phrase.

No social security available from government :

There is no social security available for the old generations in India. Therefore every individual has to start saving for the years when he stops working and will require a regular monthly income to maintain his standards of living.

Change in life style :

Change in life style has made life expensive and complicated. Having a car, a house in a decent location, a computer, television is no longer a luxury; rather these are necessities. Overall the things which were considered as wants in past have become today's need. It's very important that you start thinking about your retirement which will help you accumulate enough funds by the time you retire to help yourself to get a regular flow of income for the rest of your life so that you can lead a comfortable life with the same standard of living.