MF RECIPE TO HEALTHY RETIREMENT

The average life expectancy in India has doubled since 1950s, and with the rising cost of living, mutual funds could be the medicine to ensure our funds outlive us

- SWARUP MOHANTY

By SWARUP MOHANTY, Director & CEO, Mirae Asset Investment Managers (India)

When India became a republic in 1950, the average life expectancy was 35.21 years, in 2022 it stood at 70.19 and by 2100 it will become 81.96 years, according to UN estimates. Taking 2022 numbers from a financial perspective, the average life can be divided in three phases - early phase, the accumulation phase and the transition phase.

The early phase refers to the years of growing up, getting formal education and early years of job (10-28 years). The accumulation of wealth phase (28-58 years) is when we excel at our work, change jobs for a better standard of living, earn, spend, save and invest. The transition phase is when there are no earnings, but only expenses (from 59 till death).