Don’t Take Retirement Planning For Granted – Here’s Why

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I recently came across a depressing story in the news about an elderly senior citizen who was thrown out onto the streets by his children because they were no longer interested in caring for him. Moreover, weeks of starvation had made him extremely weak and ill. Luckily he was spotted and rescued by an NGO and is now recovering in a nursing home.

This incident was extremely shocking and yet the truth for many senior citizens of our country. It is observed that many citizens who depend on their children after retirement are left on their own even for their basic needs. Many of them end up in nursing homes, while some become homeless.

This problem can be solved to a large extent by opting for an optimal retirement plan that can help senior citizens during their post-retirement period. Having such a plan can make the insured financially equipped and he does not need to rely on his children for financial assistance. It also provides a sense of confidence and helps lead a happy retirement life.

Let’s take an in-depth look at some of the other important reasons why you should never take retirement planning for granted:

Live with self-respect

When you do not have sufficient income to support yourself, you will have to depend on other people like your children or relatives for the same. This can be a recipe for disaster as they may start treating you like a burden after a while. As a result, you may have to compromise on things you need or do things you don’t like to do. All of these can create an unhealthy and toxic environment at home and lead to fights and even cause emotional stress.

Planning and investing for your retirement while you work can help you build a huge body of work because planning for retirement is a long-term goal. This will ensure that you can live your life comfortably without depending on others for any form of financial support.

Ensure regular income after retirement

Many people make the most common and stupid mistake of assuming that a lump sum in the bank would be enough to support them throughout their lives. Unfortunately, due to rising inflation, the cost of living is also increasing proportionally day by day.

The cost of basic groceries like sugar, cooking oil, rice, etc. has been multiplied by almost 3 over the last 2 decades. Thus, the cost of living is expected to increase further in the coming decades. Therefore, rising inflation will erode your savings at a faster rate. Therefore, it is important to have a steady source of income even after retirement that will support your monthly expenses.

To avoid using your pension fund for other purposes

Many people tend to use their lump sum retirement fund for other purposes, such as college/child marriage or buying property or a vehicle or for any other debt.

While some of these expenses may be unavoidable due to the emotional quotient attached to them, they shouldn’t be borne by your retirement fund. One can avoid such situations by investing in a deferred annuity plan that will provide monthly income to take care of expenses as long as he/she is alive.

Final Thoughts

Planning a comfortable retirement is a necessity for everyone because it is very important to have a regular and guaranteed income to meet your expenses even when you are not working. Unfortunately, it takes a long time for many people to realize this fact and gradually end up compromising even on their basic needs.

Saving even a small amount regularly in a long-term deferred annuity plan can help create a guaranteed source of income for life and lead a comfortable, self-respecting life.

by Rakesh Goyal, Director, Probus Insurance Broker


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