Retirement planning is often not given the attention it deserves, especially in India. A study conducted by HSBC in 2019 found that only 33% of working-age people in India have started saving for retirement. This is a worrying statistic considering that the life expectancy in India has increased to 69 years, and retirees need to be financially independent for at least 20-30 years. Moreover, with the cost of living increasing, inflation, and the lack of a social security system, planning for retirement has become more critical than ever.

For instance, let’s consider the case of Ramesh, a 40-year-old working professional. Ramesh plans to retire at the age of 60 and needs to have a retirement corpus of Rs. 5 crore to maintain his lifestyle. If he starts saving at the age of 40, he needs to save around Rs. 67,000 per month to reach his retirement goal. However, if he starts saving at the age of 30, he needs to save only around Rs. 28,000 per month to achieve the same goal. This example highlights the importance of starting early when it comes to retirement planning.

Let us discuss 13 key points that can help individuals in their 30s and 40s plan for retirement in India:

1. Start with a retirement goal:
The first step in retirement planning is to set a retirement goal. Determine what age you want to retire, how much money you will need to retire, and what lifestyle you want to lead after retirement. It is crucial to keep in mind that you will have to adjust for inflation when calculating the amount you will need to retire.

2. Invest in a retirement plan:
Once you have determined your retirement goal, you should start investing in a retirement plan. Retirement plans, such as pension plans, annuities, and mutual funds, can provide you with a regular income stream after retirement. These plans offer tax benefits and can help you build a sizable corpus over time.

3. Build an emergency fund:
In addition to a retirement plan, it is essential to have an emergency fund. An emergency fund is a reserve of cash that you can use in case of unexpected expenses, such as a medical emergency or a job loss. This fund should have at least six months of your living expenses.

4. Pay off debt:
If you have any debt, such as a home loan or a personal loan, it is important to pay it off before you retire. High-interest debt can eat into your retirement savings, and you may end up with a lower retirement corpus than you need. Make a plan to pay off your debt as soon as possible.

5. Save aggressively:
To build a significant retirement corpus, you need to save aggressively. You should aim to save at least 15-20% of your income every year for retirement. You can increase your savings rate by reducing your expenses and finding ways to increase your income.

6. Consider diversifying your investments:
Diversification is crucial when investing for retirement. By spreading your investments across different asset classes, you can reduce your risk and increase your returns. You can consider investing in a mix of equity, debt, and real estate.

7. Monitor your progress regularly:
Once you start investing for retirement, it is important to monitor your progress regularly. Review your retirement plan annually and make changes if necessary. Adjust your investments based on your changing needs and goals.

8. Consider healthcare costs:
As you age, your healthcare costs are likely to increase. It is important to plan for healthcare expenses in retirement, such as regular check-ups, medications, and medical procedures. Consider investing in a health insurance policy or a mediclaim plan to cover these costs.

9. Factor in the impact of inflation:
Inflation can erode the value of your savings over time. When planning for retirement, make sure to factor in the impact of inflation and adjust your retirement goal accordingly.

10. Don’t rely solely on your employer’s pension plan:
While your employer’s pension plan may be a good source of retirement income, it is important not to rely solely on it. Consider investing in additional retirement plans to supplement your income.

11. Take advantage of tax benefits:
Retirement plans offer tax benefits that can help you save money on taxes. Make sure to take advantage of these benefits to maximize your retirement savings.

12. Consider annuities:
Annuities are a type of retirement plan that provides you with a regular income stream for the rest of your life. Consider investing in an annuity plan to ensure a steady income in retirement.

13. Be mindful of lifestyle changes:
Your lifestyle is likely to change in retirement, and you may need to adjust your retirement goal accordingly. Consider factors such as travel, hobbies, and other leisure activities when planning for retirement.


Retirement planning is essential, and it is never too early to start. By following these tips and taking a proactive approach to retirement planning, you can ensure financial independence in your golden years.

These tips are brought to you by the financial planners at HappyWise Financial Services.

Planning for retirement can be overwhelming, but with the help of financial planners at HappyWise Financial Services, you can achieve your retirement goals, and ensure a comfortable retirement. Don’t wait until it’s too late to start planning for your retirement. Connect with our expert financial planners today through Email or through Whatsapp and start building a brighter retirement future.

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