In the day to day rush of life, most of us are preoccupied with keeping up with life’s requirements and our wishes. While saving for today, we forget about saving for tomorrow. More often we miss out on thinking and planning for our rainy days and our post-retirement phase. Although the very idea of retirement has transformed over the past years, this post work-life phase still needs some important preplanning.
This conclusive part of people’s lives is a beginning of a new chapter for many. They go on to pursue their talents and also translate their hobbies into new professions.
Before we think about how one should go about planning a better-retired life, the focus should be on the question ‘Why we need to plan our retirement in the first place?’ To be financially secured and maintain the standard of living, one needs to sketch out a future plan of action.
Here are some of the reasons why preplanning for retirement is as important as any other financial goals:
1.Increased life expectancy: With the advanced medical and healthcare facilities, today we live longer than the previous generations. This also means in today’s age, one needs to gather enough funds that can help maintain a longer life. It is necessary to be prepared to deal with healthcare needs and expenditures that may come our way during the latter years of our lives.
2.Insufficient pension funds: The pension schemes that most retirees are offered by their employer or the government are most likely to not suffice the daily needs after retirement. These kinds of pensions are generally insufficient to keep up with your lifestyle.
3.Social structure alterations: Even in India, most retired people do not like to depend on relatives or children for post-retirement expenses. An independent lifestyle is feasible only when supported by a financial cushion.
4.Inadequate social security system: India has no social security system. Therefore, this leaves people no choice but to plan and build the entire amount to help meet the regular expenses post-retirement.
5.To remain self-sufficient: It is only understandable to see retirees want to continue their role as contributors. Even after their retirement, some choose to play an integral role in the family by providing and supporting the kids or grandkids. Being self-sufficient is an innate want in many amongst us. Another budding trend is starting out a new solo venture and this can be made possible only when one is economically self-contained.
6.Rest and respite from duties: Everyone chalks out their own post-retirement plans, which has a long list of wishes he or she hasn’t been able to accomplish during work years. After fulfilling all our responsibilities, we may wish to go on our much-awaited holidays or pursue a hobby. A retirement saving could help in accomplishing the larger goal.
Bearing these main points in mind, it’s wise to seek advice and direction from a financial planner for laying down your financial goals. Retirement isn’t all about age; it also depends on the kind of lifestyle one lives and plans to continue living.
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