The formal retirement coverage in India is severely inadequate, with only 9-10% of the population estimated to have some kind of pension benefits. Nearly 88% of the total workforce is engaged in the informal sector where only 3-4% of the employees have pension coverage. In the formal sector, less than a third of the employers tend to set up a superannuation fund for retirement purposes.
So, if you have just landed your first job in this so-called pensionless generation, you need to take control of your finances and investment goals from the beginning. Apart from various products at Finserv Markets which can help you in prudent financial planning, there are some key steps you should follow to secure your new-found financial stability. Here’s a cheat sheet on what financial steps you should take after securing your first paycheck:
- Make a budget and track your expenses: Know what your income actually is and budget your expenses. First, take care of mandatory expenses like loan instalments, rent and food, and then spend on lifestyle expenses. Learn to keep a track of your money and do not spend more than your income.
- Set Goals: Figure out your long-term and short investment goals. Long-term goals may include buying your own house or retirement plans, while short-term targets can be paying off your education loan. Charting out a financial journey and working towards it is important.
- Get insurance: Health insurance should be the top priority to protect yourself from some huge medical expense that you cannot possibly afford. Finserv Markets offers a wide range of individual as well as family health insurance plans for as low as Rs. 198 a month.
After that, consider getting a term insurance or a Unit Linked Insurance Plan for life cover. Finserv Markets has some of the best ULIPS in the market that help you achieve your life goals effectively and efficiently.
- Start saving for retirement: Like most good things in life, wealth creation too, takes its own time. Therefore, you should start saving towards your retirement from an early age. Apart from provident funds and pension plans, you can also invest in ULIPs which offer market-linked returns like the ones at Finserv Markets.
- Designate your beneficiaries: Name a beneficiary on your financial accounts including insurance. This is a basic financial task you’ll have to revisit with time, as your life changes. For now, you’ll probably want to name your parents or siblings, presuming you’re not married.
After you have done all this, you will realise that this is just the beginning of the journey towards wealth creation. With a plethora of products to take care of your financial needs at Finserv Markets like health insurance, ULIPs and personal loans, you can start the prudent planning of your future from today itself.
Finserv Markets, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!