It is estimated that in 2050 the number of dependent adults in India will reach the number of dependent children for the first time, making retirement planning necessary.
To achieve your various life-stage goals and to maintain your desired lifestyle during your retirement years, you need to make prudent investments during your working years, putting your hard-earned money to work for you in your golden years. Retirement planning has been offered as a holistic solution in India aimed at enabling people to achieve their financial dreams both pre and post-retirement.
There are many reasons to why planning for retirement is important like any other goals:
Increase in life expectancy:Better healthcare and medical help is a prime reason why our generation will live longer. But, with advanced medical facilities, one needs to chalk out a proper plan to sustain the health expenses in the long run.
Pension Funds:The employer or government funded pension schemes are less likely to sustain the income needs post-retirement.
Change of social structures:Many retirees don’t prefer depending on their relatives or children for meeting post-retirement expenses. Maintaining independent lifestyle is sustainable only when backed with a financial cushion.
Desire to remain contributor:The want to contribute to the family by providing and supporting the kids or grand kids at milestones of their life remains even after retirement is inevitable.
Rest and relaxation:After fulfilling all your responsibilities, you may want to build a retirement corpus to go on holidays, to pursue a hobby etc.
Lack of social security system