Retirement is one of the important phases of a person’s life when the person, after decades of dedicated service, comes with its own share of financial woes and unpredictable measures. The absence of a regular monthly income means that strain is put on the existing savings and returns from investments. Here is a list of certain important ways in which retirement can be planned:

Increase the volume of investment with increase in income:
Starting from the earlier phases in life, choosing an investment that yields dividends as and when required is very essential. As the career graph moves on, there comes a phase when the volume of investment can be increased.

Start early:- The cost of living in India is on an upward spiral and this makes us feel the pinch with each passing day. Therefore, it is important to start investing in your future as soon as you start earning. Younger the person is at the time of commencement of relegating funds towards a retirement investment, higher is the term build up and the resulting payout at the time of investment-maturity.

Consider the inflation factor while taking a retirement plan: Seeking to invest and build up on that investment is important. However, the fact that inflation affects financial planning heavily must never be ignored or belittled. Inflation can make your returns take a plunge and therefore, while choosing any plan, you must make sure that you have taken the futuristic price-rise projections into consideration.

Invest in health-insurance and specific plans simultaneously: You may not be in the prime of your health in your sunset years and therefore, start early when it comes to building up the financial safeguard in times of emergency. This ensures that your savings and the returns from the investments made by you do not suffer due to medical contingencies.

Investing for your child’s future can be a great way to give them a head start in life. By investing early and regularly, you can help your child build a healthy financial future that is full of opportunities and possibilities. Mutual funds consist of a wide variety of investment options as per the risk profile and return expectation of the investors. You can choose mutual fund schemes for purposes like your child’s school fees, higher education, marriage, etc. For long-term goals like marriage and education, you can invest in equity-oriented mutual fund schemes; for admission to school and other short-term goals, you can invest in a hybrid fund or debt fund. A mutual fund allows you to invest a lump-sum amount or through instalments via a systematic investment plan (SIP).

Family financial planning is an essential component of effective financial management as you navigate various life phases. It encompasses the development of a well-rounded strategy that encompasses budgeting, debt reduction, and savings. Mutual fund investments can be a means to realize your objectives at different life stages, whether it's financing your children's weddings, embarking on international travel, or ensuring healthcare for elderly parents. Understanding the significance of financial planning and considering professional advice from a financial advisor, when necessary, are both crucial aspects of this process.

Mutual funds can play a significant role in tax planning, offering various tax-efficient investments. In India, Equity Linked Savings Schemes (ELSS) offer deductions upto Rs. 1,50,000 under Section 80C of the Income Tax Act. Many mutual funds offer dividend reinvestment plans, allowing you to reinvest your dividends automatically. This can help you defer taxes on dividend income.In certain situations, SWPs can be used to structure your withdrawals from mutual funds strategically to minimise the tax impact. You can withdraw a fixed amount regularly, potentially keeping your income within a lower tax bracket.