by Sanjeev Kumar Gopalakrishnan, Financial Planning
09 Aug , 2018

Retirement Planning: 4 Tips You Can Use in Your 20s to Enjoy a Relaxed Retired Life

All of us dream of leading a satisfied and contented retired life – a blissfully relaxed retired life does sound exciting, doesn’t it? Retired life is not the time to worry about financial planning or an insecure financial future. It’s the time to take up a hobby, follow our heart, focus on our well-being, prioritize health, enjoy a peaceful life, and continue to work, but at our pace. Well, all this can be a reality if we start out retirement planning right from our 20s.


Our 20s are the golden period of our lives, where we try to figure out the path that our lives and career would take. But 20s are also the perfect period for making and starting on implementing retirement plans. Else before you know it, you will be reaching your 30s, where the burden of a lack of retirement planning will start weighing on you heavily.

So, here are some retirement planning tips that will help you in strengthening the retirement years to come.

Tip 1 - Figure out your long-term goals

Though 20s is little too early to decide on the long-term goals in life, you should take courage and spend time to analyze the benefits of investing in retirement plans early. Basic or common long-term objectives for your retired lives could include owning a house, leading a debt-free life, and having a regular monthly cash-inflow for expenses and savings. Always account for inflation to extrapolate the amount of money you would require to lead a comfortable retired life.

Tip 2- Diversify your investments

One of the most significant retirement moves to make in your 20s is to invest in appreciating assets. Analysing the stock market trends and investing in diversified stocks can be beneficial in a long-run. Start investing in a monthly retirement plan by contributing a specific percentage of your income every month. This approach will help you reap a considerable fund during retirement. Study each investment on the basis of the returns you would gain when you retire. Of course, there’ll definitely be some amount of speculation that you will need to account for while making your investments. Hence, use the expertise of a certified financial advisory service from India to make the right investment decision.

Tip 3 -Clear off the debts

Any student loans, home loans, or personal loans that are pending at this point have to be taken care of diligently without missing any monthly dues. Beware of using credit cards excessively, since you may end up in serious debt troubles from unmonitored use. Learning to minimize debts and leading a life within the income can help you be committed towards saving for retirement. Otherwise, at your retirement, most of your hard-earned savings will be lost in clearing off the accumulated debts.

Tip 4 - Get life cover in your 20s

You can secure the financial future of your family members even after your demise by taking a robust life cover. The advantage of focusing on life insurance in your 20s is that you can easily gain life cover during this period. The health-check-up requirements and other eligibility-related formalities are less stringent between the age of 20 and 30 years. Moreover, the more you delay getting a life insurance, the fewer returns you will gain from them. Monthly premiums are also not such a financial burden when you get a life insurance earlier.  

Invest in your 20s in some smart retirement planning to enjoy your retired life

Tiny steps in your 20s will help you pile up a considerable sum for retirement. Enjoying a retired life can be a reality when you start working towards it from a young age. Account for inflation and research in detail about the various financial investment options you can incorporate in your retirement planning by seeking the help of a financial advisor.  


PrognoAdvisor is your trusted online financial planning service from India, with extensive expertise in understanding your specific financial and life goals and guiding you achieve these goals with confidence. Connect with to understand how you can prepare and implement a robust retirement plan right from your 20s.


 About The Author

Sanjeev Kumar G, an IBS Chennai Alumni, is a Certified Financial Planner (CFP) from India, since 2005. He has 22 years of experience and is an expert in various personal finance areas like portfolio construction, investment research, life insurance and financial planning.


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