With an increase in income and spending habits by individuals, many fail to plan for their retirement. They also tend to invest in some policy which they are not sure of. Retirement planning plays a very vital role in any individual's life. As his future will depend on the amount he invests now.

For financial free retirement, one needs to consider various things depending on the lifestyle, and commitments.

Planning defers from person to person and there is no so-called perfect retirement plan. It has to be planned well in advance and plan should be bought depending on your need.

Here are 10 things to look and think before planning for retirement

1) Age of retirement

The first thing for retirement planning is knowing when you want to retire and age of retirement so that you can save accordingly.

2) Inflation

Inflation is the major role player in retirement planning, and many individuals ignore to consider inflation rate at the time of planning. Considering inflation and economy will give you a better picture of the final amount.

3) Expenses Now and Then

Calculate how much you are spending now considering your spending habits. Reduce if you are a shopaholic and made unnecessary spending.

4) Medical Expenses

Make sure you have a term plan as well as health plans even if your company is having cover for you. If the spouse is not working, ypu can consider family health plans.

5) Taxes

One of the best ways to save and earn tax benefit is by investing in PPF and related schemes.

6) Invest according to you age

If you are young and earn enough it is better to invest in equities and mutual funds. A middle-aged individual can consider some blue chip stocks and mutual funds which are a safe bet.

7) Avoid combining insurance and investments

Many investment experts are against combining insurance and investment with products such as Ulips, Endowment policies, Money Back policies.

8) Start Now

There is no perfect time to start investing for retirement. Invest early to reap best benefits out of compounding of money. Making a start is important irrespective if the amount.

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