Retirement Planning for Women: 4 Ways to Build a Backup Plan for Retirement

As more women enter the workforce to drive India’s economic growth, it’s important for them to have a retirement back up plan. This is because often women need to take a break from work due to family commitments. While some rejoin, others may not. Given below are four ways through which you, as a woman, can build a retirement backup plan.

It is essential for you to start saving for retirement as early as possible. To put it otherwise, you should ideally begin from the day you receive your first paycheque.You can get started with a recurring deposit in a bank. You can give standing instructions to your bank whereby a fixed amount of money will be deducted on a specific date. Starting with RD can help you imbibe a disciplined savings habit.

To make up for the shortfall in corpus due to a career break, it’s important to invest in instruments offering long-term capital appreciation. In other words, you should ideally invest in financial tools that have the potential to offer high returns in the long term.However, do note that the higher the returns, greater are the risks. Therefore, you must do due diligence and invest in well-regulated instruments. Do track returns of such instruments in the long-run and analyse their fundamentals before committing.

Annuities are products that offer periodic payments at a certain point in time. They can be prudent tools to generate a regular post-retirement income . There are two phases of annuities. These products have two phases.The first phase is known as the accumulation phase, where you contribute towards the product, either in lump sum or staggered manner. Once this phase is over, you start receiving periodic payments. Buying annuities early in your career can help you make greater contribution towards the product, thus receiving a higher pay-out later.

If you have a career break for a long time, getting back into regular work can be a little difficult. To keep earning and keep yourself relevant, you can explore work from home opportunities in your domain. Today, plenty of such opportunities exist.Working part-time or as a freelancer can not only help generate income for meeting regular expenses but also ensure you can save towards your retirement.

These tips can help you fortify your retirement plan and ensure you enjoy the years stress-free. However, as needs differ across individuals, you need to have a holistic view of your requirements and act accordingly.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.