February 15, 2012

Retirement Planning-Read fully before neglecting

Today I want to discuss with you one of the must have plan of your life and most neglected goal of all. To our younger generations who are around the age of 25-35 yrs of age, when someone speaks about Retirement Planning, their first reaction is “ha ha….retirement planning at this age? who knows how many years I survive? My Grandparents lived upto 80-90 yrs of age, my parents around 65-75 yrs of age then what is the need to think about me? May be I may survive till the age of 55-60. Then is it necessary to plan for that????…”

But think twice before neglecting this goal of your life. Indian and World’s Population data showing alarming signs of life expectancy ratio. You may notice that in below chart clearly.                                                                              

It shows that Life Expectancy of Indian population is growing rapidly. Hence before neglecting and thinking that you may live upto to the age 55-60 yrs, think twice!! Today it is at 68, what will be the situation when actually you reach the age of around 55?

Reasons for this upward trend also shocking!! Death Rate of India is decreasing in the same manner. Which you can notice in below chart.

                                                              

Hence what you can notice is, Life Expectancy growing and Death rate is decreasing. Reasons are more like health facilities, food and caring for your health etc. Now think and decide, is it still worth to neglect your Retirement Planning?

In my future post I will discuss about the best way to prepare and build your retirement corpus. Hope you understood the importance of Retirement Planning. Happy Saving!!

(Graphs Source:Index Mundi)

9 Comments

  1. Is there second part of the article?? If yes, send me link of the same

    Thank you
    Kunal

    Reply
  2. Is there second part of this article.. ?? I didn’t find it..

    Reply
    • Kunal-It is old one. Thanks for pointing. Let me update the same.

      Reply
  3. Dear Sir,

    Need some guidance in planning post retirement for my parents. My father who is a govt employee will be retiring end of this year. He is going to get PF lump sum and Gratuity. Although he will be getting regular pension but will not be sufficient for both of them. Hence would like to spend the PF and gratuity in such a way to ensure the regular cash flow to meet their regular needs also to care of inflation. While reading some of your articles got to know about SCSS, MIP from post office. I have taken a health insurance for both the parents. Kindly suggest any other investment avenues

    Thanks
    Shekhar

    Reply
    • Shekhar-Whether emergency fund is kept aside for their health issues. Because at this age they need huge emergency fund (even though you bought health insurance). You can check with LIC’s immediate annuity plan Jeevan Akshay.

      Reply
  4. Hi,

    I couldn’t find the second part of it. Please let us know the URL.

    Reply
    • Rupen-Sorry to miss that second part and thanks for reminding it 🙂 Let me write on the same.

      Reply
      • Dear Sir,

        Not sure if you have already wrote article on it, if yes is it possible to link or share the URL.

        Thanks
        Shekhar

        Reply

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