Prepare Yourself for Retirement
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Retirement is a phase where you don’t work to earn your living but the harsh reality in India is many still work in their 80s. – Take the example of the recent social media outreach of “Baba Ka Dhabha” in Delhi.
That old couple in their 80s is still working day and night to earn their living. Though situations for everyone can’t be that bad, like, this couple may have a lack of resources in their life, forget about planning retirement.
But that should not be the case for people who are educated enough and blessed with resources.
Generally in India we have never seen anyone talking about Retirement Planning, our parents used to plan about buying a house, grand wedding but Retirement is important too, is what we never heard.
Times are changing and we need to change our mindsets also, we don’t need to set a goal for retirement, It’s already SET. You just need to prepare yourself for Retirement.
Retirement is either you don’t want to work to earn a living anymore or you don’t want to work anyway. In both cases, you need a Retirement Corpus that can take care of your monthly expenses.
Retirement Corpus is Scary
Many of you might not plan for retirement because the figures that come out when you calculate it are too big numbers and scares you.
But that is the harsh reality, planning for retirement is not easy, it takes a lot of effort and you have to plan it very seriously otherwise Retirement Life will scare you every day, every hour, and every minute once you retire.
If your current monthly expenses are Rs.25,000 and you are going to retire in the next 25 years with a life expectancy of another 25 years then you need a corpus of Rs.2.68 Crores. – To achieve this you need to invest at least Rs.20,000 every month.
(Assumptions: Inflation – 6%, Pre Retirement ROI – 10%, Post Retirement ROI – 8%)
These numbers should not scare you, instead, you have to prepare yourself for it, remember your child may get a loan for their education, or you can get a loan for buying a home but you will never get a loan for your Retirement. – PREPARE YOURSELF FOR THIS!
If you need any assistance in planning your retirement, you can consult us for all your financial planning queries.
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Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
