While doing retirement planning, you must keep some things in mind so that you have an idea of ​​how much money you will need to live a good life at that age and how to prepare that amount. Here know those 4 points which should be in the mind of every person.

In today's time, a wise person is the one who starts planning for his retirement from the time of job because in old age you will not have a source of income, then only your savings will be useful. But while doing retirement planning, you must keep some things in mind so that you have an idea of ​​how much money you will need to live a good life at that age and how to prepare that amount.

The more intelligently you think about this and plan, the better funds you will accumulate. Here are those 4 important points that any person must keep in mind before doing retirement planning and should prepare accordingly. If you do this, by old age you will accumulate so much money that it will not be easy for you to manage it.

First of all, do this calculation.
Today, when we talk about 1 crore rupees, it seems like a huge amount to us, but a few years from now, its value will not be very high. Keeping this in mind, you will have to accumulate so much money that it has a good value at the time of your retirement age and accordingly, you will have to decide the strategy of savings and investment. Now the question is how will you know in how much time the value of your savings will increase? For this, the Rule of 70 will help you. It tells that in how much time the value of your savings will be halved. For this, you should know about the current inflation rate. When you divide the current inflation rate by 70, the number that comes in front of you will tell you in how many years the value of your total savings will decrease to half.

Recognize the power of compounding.
When you have an idea of ​​how much money you need to save till retirement age, then you will have to save that much money as savings and invest it. Invest in places where you get the benefit of compounding interest. Compounding can convert investment into wealth. In this, you get interest on the investment amount as well as its interest. The longer you invest, the more you can benefit from compounding. In such a situation, as soon as you start a job, invest as much as possible in schemes that offer compounding benefits like PPF, NPS, SIP, etc. Apart from this, employed people can also increase their investment in EPF through VPF and can add a good retirement fund through this.

Make sure to keep variety in the portfolio.
It is said that all the eggs should not be kept in one basket. The same rule applies in the case of investment as well. Therefore, never invest all your savings in a single scheme. Divide the money and invest it in different schemes. This is a safe and smart way. Keep this in mind very well.

Remember the 20 percent savings rule.
You should get into the habit of saving with your first income. For this, keep the 20 percent rule in mind. The financial rule says that every person should save 20 percent of his income and invest it. In such a situation, if your salary is Rs 40,000, then you should invest Rs 8,000 out of it in any case. As your salary increases, your 20 percent share will also increase. If you invest following this rule, then you can add a good amount of money in the coming 25 to 30 years.