• The early riser gets the worm. This saying holds true even when it comes to retirement planning. Your early twenties represent a suitable opportunity to begin investing since you don’t have significant financial obligations. Nonetheless, many young people often neglect the idea of planning for retirement. Here are several reasons to rethink early retirement planning.

The Effect of Compounding

• Beginning your investments early allows your money to have more time to grow through compounding. Indeed, Einstein referred to compounding as the 8th wonder of the world. He stated, “He who understands it, earns it. . . he who doesn’t. . . pays it. ”

• A quick jumpstart permits you the opportunity to save smaller amounts and still accumulate a substantial amount compared to someone who waits to invest, even if they contribute more!

• The illustration clearly demonstrates that in order to reach the same fund value at retirement (approximately Rs. 21 Lakhs), the person in Case 2 had to contribute Rs. 285,000 more than the individual in Case 1. Utilize a retirement calculator to determine the monthly sum you can invest to form a corpus for your retirement.

Prepare for Unexpected Events

• You must be familiar with the fable of the grasshopper and the ant. While the ant worked hard and stored its resources for unforeseen circumstances, the grasshopper merely reveled in the warmth of the sun. We all recognize who ultimately prevailed there.

• A retirement fund can assist you at various stages throughout life by offering you some tranquility. While it should serve as a last resort, a retirement policy or fund can be utilized to secure a short-term loan in times of emergency.

Cater to Your Dependents

• Your life is a valuable asset. Throughout your career, you take advantage of this asset to build wealth. However, the future is unpredictable. If you are no longer present, how will your loved ones be affected? In such situations, an insurance-based pension or retirement plan can support your spouse or dependent parents.
• Unit Linked Insurance Products (ULIPs) differ from traditional insurance products and carry various risk factors. The premium contributed to the Unit Linked Life Insurance Policies is exposed to investment risks related to capital markets, and the NAVs of the units may fluctuate based on fund performance and elements affecting the capital market, with the insured being accountable for his/her choices. Axis Max Life Insurance serves solely as the name of the insurance company and as the name of the unit-linked life insurance contract, and it does not imply the quality of the contract, its potential future outcomes, or returns. It is important to understand the associated risks and relevant charges through your Insurance agent, Intermediary, or the insurer’s policy document. The different funds available under this contract are merely the names of those funds and do not reflect their quality, potential future outcomes, or returns.