Introduction

Your 20s have a lot of influence on how your retirement years will be. We may think in our 20s that it's still early and we have just started to earn. Retirement may seem a distant sight, so we put off saving money for our future. This is one of the most common mistakes we make. Starting early for your retirement will increase your income and savings for the future. Starting early, even if you start with small amounts, you can design perfect retirement for yourself. 

Why should you start saving early?

When you're young, you have less responsibilities on your shoulders. It becomes easy to save more in your 20s.

The interest earned on your savings and reinvested earnings will be multiplied if you start saving early.

Even if you start with small amounts, if you start early you may save more than enough for your retirement.

Things you need to consider in your retirement planning-

Present age
Age who plan to retire
Current income sources
Any future income source
Current and future expenditure
How much amount you can afford to keep aside for retirement
Savings account you possess or wish to open

Types of savings plan you can invest in-

NPS- Section 80C of the Income tax act covers the tax deduction of ₹1.5 lakh for self contribution to the National Pension Scheme. Section 80CCD(1B) of the Income tax act covers the additional deduction of ₹50,000 which is allowed if a contribution is made towards the NPS. 

ELSS- A tax exemption of  ₹1.5 lakh is permissible via Section 80C if investment is made to ELSS.

PPF- Under Section 80C of the Income tax act, investment in Public Provident Fund is eligible for a tax exemption up to ₹1.5 lakh. Under Section 10 of the Income tax act, interest and maturity are relaxed from tax. 

Plan your retirement with PensionBox

Start your savings planning early for a perfect retirement. Visit https://pensionbox.in/ to make informed choices about your retirement.