We all have grown with our elders and grandparents around us. We have spent our childhood listening to the work styles of our grandparents, how their nature of work and their work culture differed from our parents and ours. Old age is the stage where one is supposedly worry-free about arranging the family’s monthly expenses. The senior citizens are assured of their monthly pension. This is the reward they receive for the hard work they did their entire life till retirement. But the situation has changed now and this golden egg called “Pension” is fast disappearing. The pension scheme is eventually giving way to planned pension funds.
We always do a wishful thinking that we will have a golden retired life with no worries and all the necessary comforts of life at our disposal. But when it comes to sit and meticulously plan for it in the springtime of our life, we act otherwise. The feeling “we have so much time left for such things” is very strong and dominates our thought process. If we do become little serious, then we end up allocating a small fraction of our earnings towards it and call it a day. By the time this realization of a serious retirement planning actually sinks in, for majority of the cases, it is quite late. Result is panic planning. The key to a comfortable and relaxed retired life lies in starting the planning journey early in one’s career. The more time you give to the planning process, the bigger would be the retirement corpus and better would be the autumn of life. With plenty in hands, one would be free to fulfil any desire left unfulfilled or pursue any long-thought hobby. This would be the time when there is no worry about bills, EMIs or any other financial responsibilities.
Retirement Planning- Necessity of Life
1. Mission Possible- Life Goals: Retirement does not mean end of happy life. On the contrary, it is the beginning of a new inning. It is the phase of life to open the closed box of unfulfilled desires, hobbies or unexplored passions. Freedom from commitments give wings to explore the unexplored horizons of life. With well-thought, pre-planned retirement, it would be life of abundance.
2. Inflation syndrome: Inflation negates any good work done in financial progress. Seemingly big savings of today might not be enough to maintain the same standard of living during the old age because inflation would have led to decline in the value of your money. Sound investments yielding compounding benefits and tax saving strategies would also contribute in helping to protect one’s hard earned savings.
3. Create a Legacy: You care for your family when you are alive and want to ensure their comfort and happiness even when you are gone. To fulfil this wish one has to plan and plan judiciously well in advance. The better and meticulously you plan, the better are the chances of your next generations’ happiness. The need for planning becomes all the more imperative if you are the lone bread earner of your family.
4. Maintaining your current standard of living: Everyone tries to maintain a decent standard of living according to their current income and wish to maintain it post retirement as well. But that is possible only when sufficient corpus has been created for those years when income stops.
5. When you want to plan for your future: With better infrastructure and improved standard of living, the world has seen an increase in average life expectancy. That translates into requirement of resources going northward. One would need more surpluses for the old age owing to increased number of years expected to stay alive. A prudent and consistent planning during the earning years would ensure that extra surplus.
6. Exigency planning: Life is uncertain. Planning for this uncertainty is not a choice but a necessity. A laid-back attitude towards such planning may lead to a financial mayhem in case of a sudden unexpected medical emergency or any such event. So, apart from an assured regular retirement income, it is equally important to plan for any unseen emergency.
7. Don’t be blinded to your societal commitments: We always show generosity towards our society by way of helping the needy or indulging in philanthropic activities, within our own capacities. A noble gesture which is highly appreciated, actually expected, from every capable person. A well-planned and meticulous retirement planning would help continue our societal commitments even in our autumn years.
Conclusion: All said and done, if one has to retain his/her peace of mind and maintain the dignity during the second inning of life, retirement planning is something which cannot be overlooked and parked for later action. With umpteen options and guidance available, the decision to start planning for your retirement must take centre stage.
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