At what age should you start a retirement plan?

The earlier you start the better it is. One mistake people make is to defer retirement planning till it’s very late. For most, it means just contributing towards their Employee Provident Fund (EPF) or Public Provident Fund (PPF) accounts. Either they do not correctly estimate the amount they will need at retirement or are focused on just short- to medium-term goals such as buying a car or a house.

An early start means you will have to save a lot less to create the same corpus. It also gives you the freedom to take risks. For instance, equities, though risky, give higher returns than other assets-gold, debt and real estate-in the long run. In the last 31 years, equity markets (Sensex) provided a compounded annual growth rate (CAGR) return of 16.85%, which is higher than other asset classes.

Watch the video to learn from investment guru Murali Kabirdass.