Ace your retirement planning with these key tips

26 May 2022

Back to all Infographics

1. Start early

Begin planning for your financial goals as early as possible, particularly retirement planning. Investing money consistently from an early age helps build significant wealth over the years.

Investor Current Age Years to retirement Monthly SIP Total Invested Amount Investment Value at age 60
A 25 35 10,000 42,00,000 ₹ 6,43,09,595
B 35 25 10,000 30,00,000 ₹ 1,87,88,466

*Rate of return is assumed at 12%.

As you can see in the above table, investor A who started investing 10 years earlier as compared to investor B accumulated 2.4x more wealth, thus highlighting the importance of starting early

2. Go for investments that effectively counter inflation

For those saving for long-term goals like retirement, it would be imprudent to ignore the brutal impact of inflation on your retirement savings. Historically, Equities as an asset class have demonstrated inflation beating returns as can be seen below.

Asset Rate of Return (%)
Equity 12.9
Debt 6.7
Gold 5.3

*Returns are for a period of 10 years

For comparison, we have considered the BSE Sensex, Gold ETF and Government Securities (gilt).

3. Automate Investments

There are many features offered by banks and mutual funds that make it convenient to Invest a fixed sum on a recurring basis. SIP’s are a great way to automate your investment without worrying about timing the market. Few major benefits are highlighted below:

• Power of Compounding

• Rupee cost averaging

• Investment Discipline

4. Get a Health Insurance cover

One of the most important things the pandemic has taught us is the importance of having Health Insurance. As we grow older, it is more likely that we encounter more health problems. With medical expenses continuously on the rise, any major surgery or treatment can eat up all your life-time savings. Hence it becomes important to have a health insurance which can help you with hospital bills in case of medical emergency.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision. Insurance is a subject matter of solicitation.

Read more

Popular Infographics

Tag Clouds

Related Infographics

  • Disclaimer

    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

Leave a Comment

Thanks for submitting your details.

Tackling market volatility

How to become a crorepati

Add this website to home screen

Are you Bank of Baroda Customer?

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.

The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.

Proceed to the website

Thank you for visiting

We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.