For retirement we shall have advanced vision and early you start thinking about it, better the results will be. Over the time money will be multiplied with the interest. If you start saving in the early age, the amount you get over the long term will be good enough to have financial benefit and relaxed retired life.

Stocks is a very good place for long term investment.You can do this directly or indirectly via mutual funds or unit linked plans. You shall not worry about the short term fluctuations in the market and keep in the mind that over the long time good companies with proper management are going to grow, deliver and give you the fruit. The average annual return over last hundred years on the large company stock is approximately 10.4 present and small company stocks return is 12.7%.

While saving the amount for the future you shall also take care about inflation factor. The value of the money will decrease over the time and every thing in the world will become costly with time. Calculate the money you are going to need for retirement with the inflation.

Money with bonds and securities will give less return and they are going to be less fluctuated with the markets.Hence in the early age start investing in terms of stocks and mutual funds. As the time approaches for retirement turn that money into more secure funds. Thus you will be getting the amount that expects and have a happy retirement.