The fact that Indians shy away from discussing retirement plans has a lot to do with our lack of financial literacy. Most of us have spent decades working and fantasizing about the day when we won’t have to go to work. We dream about a happy retirement, imagining ourselves taking a break from all responsibilities. However, only a few of us will be able to live this ideal when the time comes.
After a certain age, we’re all required to look after our waning parents, but we fail to remember that the same fate awaits us a few years down the line. A stable retirement fund ensures that we’re never financially vulnerable and can afford any care we require. Experts say there are three significant reasons why retirement planning should be a priority.
- You can’t work forever. Many of us want to work post-retirement too. But will the meager income be sustainable? Hence, retirement planning is essential to be financially independent after you stop working.
- The future is uncertain, and you might have to make an unplanned heavy investment. But will it be possible to execute if you can’t work? Good savings and the right investment can help you through unprecedented trouble.
- Health problems are unavoidable as time passes by. Medical expenses are bound to make a dent in your savings and leave you stranded financially post-recovery.
India, similar to other developed countries, lacks a social security system to care for the aged. There is neither free medical care nor a monthly government payout on which pensioners can rely. Even government employees who formerly had the security of a guaranteed pension must now build a corpus because the government has eliminated this benefit for most of its employees.
So why are we not prioritizing retirement plans? How long can we postpone an ever-looming necessity? Beyond the age of 50, one barely has the time and money to plan a joyful retirement. If this rings a bell for you, here are some of the best tips from industry experts to plan your retirement.
- Create alternate sources of income.
- Keep increasing the contribution to your retirement savings every year.
- Do not rely solely on security schemes.
- Keep risk factors in mind before investing a considerable sum of money.
- Consider inflation. 10 lakhs will not have the same monetary value 20 years later.
- Stay away from excessive expenditure.
Retirement is a time period during which you will cease to earn an active income. While some of your expenses may reduce because of this, others will increase. In an era of rising inflation, you must have a retirement fund large enough to last your lifetime; otherwise, you risk being compelled to work during your retirement, a situation that no one wants to be in.
Sure, you can take a chance and trust that your children will take care of you, but that is a significant leap of faith to make. And even if they are prepared to do so, would you want to burden your offspring with the obligation of providing for your financial well-being in your old age?
If you want to cut out the confusion over what modes of investment to use for the highest returns on your retirement fund and get a comprehensive financial plan that stands true to the test of time, then you should purchase a retirement mutual fund today.
So, with whatever little you have, start now!
For expert advice on RETIREMENT PLANNING, we are just a call away!
- Maloo Investwise Pvt Ltd-