Retirement planning requires different approaches depending on one's age. For those in their 20s-30s, the focus should be on saving regularly, avoiding debt, and learning simple investments. Those in their 30s-40s should prioritize goals, calculate post-retirement needs, and invest primarily in equity funds. For ages 40-50, higher taxes mean utilizing tax-advantaged investments while balancing risk. Nearing retirement from 50-60, the focus shifts to accumulating enough savings and lowering risk through fixed-income investments. After 60, investments emphasize liquidity, safety, and regular income through various savings options. Proper research and financial planning can help ensure a secure retirement.

1. Retirement Planning for
Different Ages

2. Introduction
 Retirement has two important words associated with it :
 Freedom from Work
 Fear of living without Income.
 Planning ahead is essential for a smooth post Retirement life.
 Planning process varies for each person based on the age they
start planning.

3. For Ages 20-30
 People are at the start of their career and spend most of the money





they earn
It’s important to resist temptation of owning a pair of that
expensive Jeans or a fancy Tablet. Save at least 20% of your salary.
Learn to Invest by choosing simple investment products like a PPF
account which also gives you a tax benefit up to 1 lakh rupees.
Golden rule: Never choose products which mix Insurance &
Investment. They are simple products but do not work in long run.
Things to Focus on: Clearing Student Loans, Saving Regularly.
Things to Avoid: Credit Card, Spending on Expensive Gadgets

4. For Ages 30-40
 Prioritizing goals is a Challenge as you will have many goals like




house/child’s future but NEVER ignore Retirement Planning.
Create a Financial Plan and work on your goals. Calculate Post
Retirement needs. Debt + Equity needed with priority to Equity.
SIP’s in Large, Mid/Small Cap and Balanced/Hybrid Funds (with
greater equity component). Other options - Mutual Fund
Pension Plans/NPS.
Things to Focus on: Clearing High Interest Debts, Emergency
Fund (Liquid Fund), Medical Insurance for Self and Family.
Things to Avoid: Investing randomly, Avoid personal loans, loans
for vehicles, consumer durables etc,

5. For Ages 40-50
 You might be at the peak of your career with higher income and




planning to retire in near future. Higher Income = Higher Taxes.
If you have built a Retirement Corpus already, you don’t have to
worry, else you might panic about your retired life.
EPF/NPS, ELSS, PPF for tax planning. Invest in Balanced Funds
(with more Debt component), Large Cap, Liquid Fund, Tax Free
Bonds.
Things to Focus on: Prepaying home loan in parts, Review of
existing investments.
Things to Avoid: Pension Plans with Insurance component, Too
much of Discretionary Spending.

6. For Ages 50-60
 This is perhaps the most important phase for this goal. By





now, you should have a fair idea of the amount of Retirement
Corpus needed.
If you have not accumulated enough, you might have to work
few more years to reach your retirement goal.
Shift from high to low risk investments. Choose SWP (Systematic
Withdrawal Plans) in order to avoid the risk of timing markets.
SIP’s in Ultra Short term/Short term debt funds, 5/10 Year Bank
FD’s, Post Office MIS are good options.
Things to Focus on: Safety
Things to Avoid: High risk investments, Sectoral Funds

7. For 60’s
 By this age, you will be devoid of responsibilities.
 Retirement benefits can be invested in Senior Citizens Savings




Scheme, Bank Flexi Deposits, 5 Year RD, Post office/MF MIS, NSC.
You could also look into your hobbies as Income generating
opportunities.
Equity gives a boost to the portfolio. Allocation to this can be up to
20%. Reverse Mortgage is excellent option to generate regular
income.
Things to Focus on: Liquidity, Regular stream of Income
Things to Avoid: Life Insurance associated Products, Ignoring risk of
living long and thus spending the corpus on unwanted items.

8. Conclusion
 Life post retirement will be blissful if you plan ahead.
 Proper research has to be done before selecting an investment
product.
 Consult a Certified Financial Planner for comprehensive advise
on your finances, in case you lack sufficient time/knowledge.
 Retirement Planning should not be isolated from other goals.
 Start saving early and reap the benefits of the Power of
Compounding.