We often ignore planning for this goal - Here’s why it should be a priority

If someone were to ask us today about the financial goals we have planned for, our list would have the usual things. A house, children’s education and marriage, a car, a foreign vacation maybe.

One goal that most of us do not pay attention to, especially as Indians, is retirement. It is in fact, one of the most important goals that one needs to plan for.

Let’s understand why:

 

• Large corpus needed

  The amount of money one needs for their life after retirement is larger than what they would need for most goals. One not only needs to accumulate living expenses or funds for about 20-25 years, but they also need to take into account that this is the stage where one could be looking at wealth distribution

 

• No loans available

  Banks and financial institutions offer multiple loans when one is working, primarily because of their repayment abilities. But getting a loan at an age where one has no source of income, is bound to be difficult.

 

• Medical expenses

  At this stage of life, medical expenses invariably tend to go up, as compared to one’s younger years. Even if one does not have any ailment, it is prudent to keep funds ready.

 

• No source of income

  While some of us may have saved through provident funds or may be receiving a monthly pension, most do not have a source of income which can take care of our regular expenses.

 

• Inflation

  Ideally, one should start planning for their retirement right from when they start earning, so that compounding can help in generating returns. An important thing to take into account is inflation. One needs to calculate their retirement corpus accordingly.

 

We have listed some of the reasons why you must make planning for retirement a priorityWe have listed some of the reasons why you must make planning for retirement a priority.

Read more at - Retirement Planning – the what, why, and when and Retirement Planning – the how, where and which decoded.

 

---

 

This article is for information purposes only. The information provided herein is derived from public sources, believed to be from reliable sources. However, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Views expressed herein involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Kotak Mahindra Mutual Fund/ Kotak AMC is not indicating or guaranteeing returns on any investments. Past performance may or may not be sustained in future. Readers should seek professional advice before making any investment-related decisions and alone shall be responsible for any decision taken.