Why work forever when you can retire young…

Time is money; start today
The most important key to retiring rich is to start saving as early as possible. We are either tempted for a major purchase or remain cash strapped and anticipate that we will contribute in future. But it doesn’t work that ways.

Don’t cash out of your retirement when you change jobs.
 If you are anything like the average Indian working class, the odds are fairly substantial you are going to change jobs at some point during your career. When this occurs, the most foolish thing you could possibly do is to cash out of your retirement plan. Instead, roll over the proceeds into PPF. In addition to avoiding the significant tax penalties, you will be able to keep your money working for you tax-free. Given enough time (you already saw the power a few decades can have on seemingly small amounts of money), this literally could mean the difference between living a good retired life and having to take a job at the Golden Arches to supplement your income.

Eliminate the Debt
It’s crucial to ensure that when your retirement date arrives you have no debt of any kind (this certainly includes your mortgage). After you retire your employment income will be 0 so to protect yourself from unforeseen events (ie- rapid rise in interest rates)

Expand the Pie
Don't just cut expenses - find a way to make more money! By taking on side work or turning a hobby into a business enterprise, you can create additional streams of income to help fund your retirement. In many cases, this is an excellent alternative to cutting costs because it allows you to maintain your current standard of living while providing for your future.

Source : Multiple sources

Few alternative saving method which will work for you!

Increasing tax burden for high earners is expected to prompt wealthy individuals to seek alternative ways to save money without getting taxed. For all those who want to put, more aside for retirement, here are few alternative

• The most popular way to save money is by individual saving account, where in one can keep on parking his extra earning in your saving account which can earn a little interest prior not withdrawing unless faced any crisis.

• Maximum Investment plan are the another alternative investment plan which will help in saving simultaneously investing in different equity linked products.

• Venture capital Trusts also offers worthwhile tax breaks. Investors receive heavy Income Tax relief on contribution with venture capital trust.

• Enterprise Investment Schemes are similar to VCTs in that they typically invest in early stage companies. The main benefit is that there is no capital gains tax to pay, capital losses may be offset against other gains.

• Offshore bonds also offer a potential tax saving for higher and top rate tax payer. The investment bond can grow offshore without tax being deducted. They can also draw up to 5 per cent of the original investment each year and defer any tax owed on the income until encashment. Advisors say the bonds make sense for people who will be in a lower income tax band at retirement.

Source : Financial times