Financial Planning: To ensure you live your old age without worrying about money, start financial planning while you're young..

Everyone wants to spend their old age without financial worries. To achieve this, it's important to start financial planning in one's youth. However, financial security at retirement can only be achieved if you begin preparing for it while still employed. Adopting these seven simple yet effective steps during your youth can ensure a prosperous and peaceful old age.

Determine the amount of money you need.
Clearly determine how much money you'll need each month after retirement. Include daily expenses, medical needs, and lifestyle. Estimate your retirement fund, taking inflation into account, to avoid future challenges.

Start investing with a small amount.
The earlier you plan for retirement, the greater the benefits. Even if you have a low salary, start investing in a small scheme like SIP and continue increasing it as your income increases. The benefits of compounding will yield significant returns in the long run.

Adopt EPF, NPS, and mutual funds.

Increase your VPF contribution to EPF, and build a pension and retirement fund by investing in NPS. Invest in mutual funds through SIPs for wealth creation. Safe options like PPF and fixed deposits also provide a strong foundation for old age.

Returns should exceed inflation.
Inflation will increase your expenses even after retirement. Choose investments that offer returns higher than the inflation rate. It is wise to consult a financial expert for this.

Health insurance will protect against medical expenses
Health expenses increase with age. Get health insurance early so that a medical emergency doesn't impact your savings and increase your financial burden.

Clear all loans before retirement.
Pay off all loans before retirement. By becoming debt-free, you will be able to protect your savings and reduce monthly expenses after retirement.

Check your investments periodically.
Review your retirement planning every year. Check if your investments are moving in the right direction. Readjust your investments if necessary.

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