22 Aug 2022
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 neededThe 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 availableBanks 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 expensesAt 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 incomeWhile 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.
InflationIdeally, 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.
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