With the increased life expectancy and uncertainty in the employment world, financial awareness can be a key in understanding, planning and protecting your Financial Goals and Post Retirement life. Thus, in order to increase your ability to handle your current and future debts/liabilities without creating any pressure on yourself and your family, it is essential to understand the importance of early savings and impact of delayed planning in your life. In India where our savings are the only financial support during our retirement years, financial unawareness can be a threat to your future goals.
By organizing the financial awareness program we would like to educate you into the below mentioned financial aspects –
- How to meet the financial goals of your life
- How to create a contingency fund
- How to maintain the inflation-adjusted current standard of living post-retirement
Let us understand the importance of early saving and the impact of delayed planning with a simple example –
Say Mr. A wants to accumulate Rs 1 crore at the age of 60 years with the earning rate of 10% per annum.
- If he starts at age 20 then the monthly investment amount required will be Rs 1582
- If he starts at age 30 then the monthly investment amount required will be Rs 4424
- If he starts at age 40 then the monthly investment amount required will be Rs 13169
- If he starts at age 50 then the monthly investment amount required will be Rs 48818
This clearly shows the earlier you start your investments in life the lesser will be the amount of contribution from your saving giving you the same amount of protection when needed.