Ask individuals about
their retirement plans and they’ll say they want to travel to different
countries, spend leisure time at a quaint beach house, grow vegetables at their
farm etc. But how many of them are working towards it, i.e. saving up for
retirement? Not many and this was recently demonstrated in the India 2015
Retirement Readiness Report released by Aegon Life Insurance. It revealed that
employees in India
This is an alarming
indication and highlights the need for Indians to start saving for retirement
before it’s too late. If we take inflation into account, it has been staying close to 6.2% to
6.5% per annum. It is less likely to drop considering the nation’s economic
growth. Hence, if a 40-year-old man is spending 50,000 per month today, he
would need a lot more money to sustain the same lifestyle during retirement.
Another reason which
emphasizes the need to save for retirement is the increase in lifespan. The Union
Ministry of Health and Family Welfare has stated that life expectancy in India
Even though
individuals are aware about the importance of saving for their old age, they
commit major mistakes which can highly affect their future planning. Most of
them have a definite preference for safe assets such as fixed deposits, gold or real
estate. These may produce good returns but they are not sufficient to form an
adequate long-term retirement corpus.
To prevent a
retirement crisis, it’s best to consult a financial advisor who can guide investors through every
step and help them plan correctly for their retirement goals. You may not want
to think about it right now since this phase is years away, but take a judicious
decision and begin saving from today in order to experience a happy retirement
just the way you wanted it to be.
0712- 6648180
