After a certain age, we all face the responsibility of caring for our aging parents, but we forget that the same fate awaits our children when we reach retirement age, unless we provide promote adequate planning for retirement. For example, a stable retirement fund ensures that we are never financially vulnerable and can afford all the care we need.
To be clear, experts believe there are three important reasons why retirement planning should be a priority.
- You cannot work forever. Many of us also want to work after retirement. But will the meager income be sustainable? Therefore, planning for retirement is key to being financially independent after you stop working.
- The future is uncertain and you may need to make an unforeseen large investment. But will it be possible to run it if you can’t work? The right savings and the right investment can get you through unprecedented times and challenges.
- Health problems are inevitable over time. Medical bills are sure to put a dent in your savings and leave you financially stranded after your recovery.
India, like several other developed countries, does not have a social security system to take care of the elderly. There is no free medical care or monthly government payment that retirees can count on. Even state employees who once had the security of a guaranteed pension must now build a corpus because the state has removed this benefit for most of its employees.
So why aren’t we prioritizing pension plans? How long can we postpone an ever-imminent necessity? People over 50 barely have the time and money to plan for a happy retirement. If that rings a bell, here are some of the best advice from industry experts for planning your retirement.
- Create alternative sources of income.
- Continue to increase the contribution to your retirement savings each year.
- Don’t rely solely on security schemes.
- Keep risk factors in mind before investing a significant amount of money.
- Consider inflation. Rs. 10 lakhs today will not have the same monetary value 20 years later.
- Stay away from overspending.
In an environment of rising inflation and market volatility, having a retirement fund large enough to last you for life is essential. Otherwise, you risk being forced to work in retirement, a situation no one wants to find themselves in.
Sure, you can take a chance and be sure your kids will take care of you, but it’s an important leap of faith to take. And even if they are willing to do so, would you want to impose on your offspring the obligation to ensure your financial well-being in your old age?
Maloo Investwise takes the confusion out of which investment modes to use to get the highest returns on your retirement fund and provides you with a comprehensive financial plan that stands the test of time. So, with the little you have, start today!
Opinions are personal: the author, Dr Ramesh Chand Maloo
of MALOO INVESTWISE PRIVATE LIMITED is a Mutual Fund Distributor from Jaipur
Warning: The opinions expressed are those of the author and are personal. TAML may or may not subscribe to the same. The opinions expressed in this article/video in no way attempt to predict or time the markets. The opinions expressed are for informational purposes only and do not constitute investment, legal or tax advice. Any action taken by you based on the information contained herein is your sole responsibility and Tata Asset Management will not be liable in any way for the consequences of any such action taken by you.
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