Every employee is responsible for their own after retirement life. Colleges or schools don’t really teach you things like retirement saving schemes or the benefits and so much more. But, though that does not happen – you are still responsible for it. This means you need to start saving for it. Saving for your retirement is essential for whatever you have planned for after retirement.

Suppose it is a small house in the countryside or a surplus so that you will have to never depend on anyone else again. Retirement could be scary, but it is not hard to make a move right now.

Are you in your twenties, thirties, or higher? It is never too late to start saving for your retirement. There are different kinds of ways you can do that and tips and tricks to make this saving journey successful.

Ways to Save for your retirement in your 30s

1. Use Pension Plans – (Honestly, they are worth the effort)

It can never be too late or sometimes too early to start investing in retirement schemes, and also, there is a wide range of pension schemes that you can choose from. They are mentioned here below:

– The National Pension Scheme

This scheme was established by our government, and it is also managed by the central government. When you invest in it – your investment is distributed across equity and debt markets according to your choice, as that is what the scheme invests in.

When you retire, you can withdraw 60%, and the rest can be used to buy an annuity – but if you do not know you much your returns would be at the time you invest, you can always use the National Pension Scheme calculator.

– Deferred Annuity

You can either choose a SIP or a lump sum. It is for the tenure before your pension begins – or you can also withdraw your surplus.

– Annuity Certain

The pension is disbursed for a specific period, and the policyholder can select a period.

– Pension Plan with Cover

This pension scheme comes with a cover. It means the dependents are entitled to the lump sum after demise.

– Guaranteed Period Annuity

This annuity is disbursed for specific terms like 5 to 20 years.

2. Put those Goals in Line

Everyone has financial goals, and it is given at every phase of life. Meaning when you are just finishing off college, your goal is to get that job with good pay, and by then, makeup to buy a car or even a house. As you get to different phases of life – these goals change.

So, what would be your retirement goal? Would you want to buy your groceries every month or every week? All of this comes under the hat when you think about saving. If you choose every month, choose investments that suit this cause. If you are planning on putting aside some for medical expenses or taking a trip – you can choose investment goals that suit this too.

3. What is the Horizon to your retirement?

So, if you are in your early 30s, you might want to save with lower monthly contributions and longer tenures. When you are in your late thirties – you can choose savings schemes that let you contribute higher with a shorter duration. The same applies to whichever age you are at right now. So, how much time you can save for or how much time is there left to your retirement counts when you start saving.

4. What is Your Risk Tolerance?

By now, you know that saving is not the only option that is left for you in terms of making more money for your retirement—investing plays a vital role in this. So, you can invest, and most schemes are similar to savings accounts when they are low risk. If you cannot afford to lose any money on your investment, you can always choose a low-risk investment, but if you can afford to lose some money – you can leisurely choose to invest in saving schemes that have moderate or high risk.

5. What are your Projected Expenses

When we believe everyone is unique, so is the way all of us choose to live. All of us choose to live on our own terms, don’t we? We have moved past our tribe hunts together and feasts together, to some people being more money conscious and others not thinking about spending. So, you might know what your projected expenses in the future might be based on your living style now.

It is a major part when you will know how much you have to be saving right now for later.

6. Where do you plan on living after retirement?

Everyone has a dream retirement plan on living someplace nice. Some people like the metropolis, while some like it quiet in the countryside. Your retirement stay could be anything – plan your savings according to this dream. You know you will spend a lot when you are in the city, and amongst the noise of the traffic, you will be lost on spending more traveling and getting places. It is quite different on the side of the country – but still, expenses of different kinds are involved here.

7. Compound Interest and Retirement Plans are BFFs(Best Friends for Life)

Well, do you know the one thing that that is an inherent property of retirement savings – ‘long term.’ Whether you like it or not, your retirement is somehow a long-term plan. That is, even if you are in your 40s and 50s, it is still about a decade or two away. So, this is the best time you can utilize the schemes with compounding interest. Compound interest makes you the best profits down the lane.

Even when you are only investing a lakh with a 7% compound interest – in a decade’s time, that is more than three lakhs. Isn’t that great? Who is willing to give you that much extra money? This is the best way your money can work for you. The best part is that you can choose this for as low as even a thousand bucks – but still, your returns will be high.

Final Takeaway

Once you have decided to save towards your retirement, there is nothing that can stop you. Also, always remember that there is no one or two ways that you can start – there are a variety of tools, and you will just have to choose the right one for you.