An Early Beginning For A Better Future

How to best plan for a comfortable journey after years of long rat race at work

- Nirmala Konjengbam

A retirement fund is extremely important as we would want to live a financially fulfilling and peaceful life even after we have called it a day at work. Experts feel, it is best to start investing for retirement at the earliest as it will provide the power of compounding. There are various savings and investment options available in the market. When it comes to post-retirement financial planning, we have to consider certain factors.

Besides offering tax benefits, early planning ensures a financial discipline. Retirement planning entirely depends upon your comfort level. Different people have different requirements, disparate payment capabilities and financial liabilities.

Srinivasan Parthasarathy, Senior Executive Vice President, Chief Actuary and Appointed Actuary, HDFC Life, explains, “India’s elderly population is expected to double by 2035 (as compared to 2015). By 2050, one in six people in India will be over the age of 60. A significant section of the elderly male population is currently working to meet their retirement needs. More than half of the elderly population in both urban and rural areas are fully dependant on others. All these facts indicate that there is a strong need for retirement planning for Indians.”

Healthcare expenses usually go up with growing age and this should be considered while planning one’s retirement corpus. A regular savings bank account or fixed deposits do not guarantee regular income. Moreover, if not managed well, a financial emergency can wipe away a significant chunk of this corpus. Also, you may outlive your savings.