Thinking about your retirement might seem like an extremely daunting task. Having said that, many of us choose to exile the idea till we come closer to the regular retirement age; 60 for most government employees. However, with the changing times, the transition to retirement can happen much earlier in your life. In that case, it is important to know the various ways in which you can plan for retirement with respect to the particular stage of life that you are currently in. 

• Retirement planning in your 20s and 30s: 

While it may seem irrelevant to think about your retirement at such an early stage of your career, getting ahead of the curve and planning sooner can see your corpus grow vastly. You should think about opening a Public Provident Fund (PPF) account, apart from the provident fund contribution your employer handles. This will help you develop the discipline you need to successfully manage your finances. Since you can take more risks during this period, investing in equity is also an option you should take seriously. The d  sole objective at this stage is to amass wealth for your corpus. Consulting with your financial planner will help you identify the exact amount you should work towards based on when you want to retire.

• Planning for retirement in your 40s and early 50s: 

In the middle stages of your life, as you come closer to retirement, you can think about investing in the National Pension Scheme (NPS). Since you will be earning more now, putting your money in the NPS can help you lock those savings in for you till the time of retirement. At that point, you will be able to withdraw 60% of that amount tax free, which can go into other investments. The rest will be available to you in the form of an annuity, which will go towards your sustenance. In this stage of your life, it is good to look for these kinds of investments that have a lock-in. This keeps your savings secured, with assured returns for when you decide to retire. It is important that you maintain a certain discipline with your finances during this period, as any mishaps at this stage can really deter your retirement plan.

• Financial planning at the brink of retirement: 

In your late 50s and early 60s (if you have not retired yet), you have to begin to prepare for the transition that you are about to experience. In these years, your biggest focus should be on liquidity. This will allow you to feel secure during the initial periods of your transition to retirement. Since, on average, the life expectancy is increasing in India, your plan during this stage should be geared towards organizing your funds well so that they don’t run out before you do. Working with a financial planner or wealth management firm can help you efficiently organize and review your finances during this big life transition.

So, with this in mind, start planning for your retirement as early as possible. If you have not begun yet, don’t wait any longer. Starting to save at 25 instead of 30, with an annual income of INR 10 lakh (for example) can make a huge difference in the wealth you amass. If you allocate 10% of your income towards savings from the age of 25, by the time you reach the retirement age of 60, your corpus will have an amount of approximately INR 2 crore more than if you had started at 30. This is because of the power of compounding. As a result, meeting a target amount that exceeds 10-20 times your annual salary, for a comfortable retirement, becomes more achievable