When we do the planning, the biggest priority is, of course, Retirement Planning. However, there are certain instances where you are FORCED towards your retirement. How well are you prepared for such unplanned retirement?
The psychology of the common people is that they start to think about retirement when they reach the level of 35+ years of their age. The reasons are many for these. The one biggest reason is that they may be fed up with the pressure they are feeling in their profession.
What I noticed after working with many of my client’s profile is that slowly their retirement age is reducing from earlier 50+ years to below 50 years. It may be due to the pressure in many ways. However, the biggest risk they forget is how to fund the money for their LONG retirement period. Longer the retirement life higher the fund you need.
Early retirement is the BIGGEST dream. But sadly in many cases, it is not possible.
Now let us move on to the topic, for which I started this post.
How well are you prepared for FORCED Retirement?
We assume that we will retire by this age of that age. But what if you are forced to retire early? How well are you prepared? Let me give you certain examples and how they may also happen in your life.
# Professional Risk
Many IT guys nowadays facing this situation. They are sure that they may not end up working till 50+ or 55+ years of their age. It is because of the pressure they have to face in their profession. Also, even though they may feel fit to work, but their employer may tag them as UNFIT to hire such an old workforce.
It is because young guys are more enthusiastic than older, available at damn cheap price and may be updated their knowledge to the need of the hour. These may not be possible for 50+ years of aged professionals because of their age. Hence, you have to think about early retirement.
This professional risk not only associated with IT employees. Take for instance the recent news item about Jet Airways employees, who are forced to pledge their jewelry to stay float their ongoing expenses.
It may happen with any industry. Ups and downs in particular industry are part and parcel of the game. How well are you prepared for such unplanned or forced retirement??
# Health Risk
The second biggest concern for today’s generation is HEALTH. Because I noticed that many of us are practicing unhealthy or sedentary lifestyle.
Last month I met a client who is around 45 years of age and bedridden due to some diseases since 4 years. Luckily in his case, his wife is a Government Employee. However, being bedridden at such age is the biggest curse. How to manage such unplanned or forced retirement forever in your life? Are you prepared for this?
Creating wealth is one part and to enjoy the wealth you need a healthy body. If you are unfit, then no use of your wealth. Hence, concentrating on the health aspect is the utmost importance these days.
Whether you thought of a situation where because of your health issue, you are forced to retire early??
# Family Risk
You may not think on this right? Let me give you one example. Assume that your family constitutes of you, spouse and a kid. Suppose due to certain health issues, if any of the family members turned to be bedridden, then either you have to depend on nurse or maid to serve them or you are forced to leave your job to serve them.
If you are lucky enough to afford the cost of the nurse or maid, then FINE. Otherwise, one member of the family has to be with the patient always. Leaving the job may be of yours, your wife’s or your kid’s also.
This has exactly happened with one of my wife’s colleague. She was forced to leave the job when her husband turned bedridden due to illness. At the same time, to run the show, her daughter was forced to discontinue her study and search for the job.
Hence, because of certain family circumstances, you may be forced to leave your job. How well are you prepared for this?
# Your Hobbies
How your hobbies connected to retirement? Yes, in many cases they are. Take for example of a person who has a hobby of mountaineering. What if something went wrong and meet with an accident? How well are you prepared to live your future life by being bedridden or unable to work.
For example, if you are a software guy, then suddenly if something happens to your eyes or hands and forced you to discontinue the profession, then what you do?
Sometimes your risky hobbies may ruin your life forever and force you for life long unplanned retirement.
Health, hobbies issues are something different from accidents. Accidents may happen to you while traveling or in any means.
Suppose you met with an accident and faced a situation of partial or fully disable situation where you are unable to perform your professional duties, then without any options, you have to RETIRE.
How well are you prepared for such incidents in your life?
Conclusions:- I have updated the few instances, which I came across. However, there may be many reasons which are beyond our imagination. Hence, thinking about your retirement is a serious issue. Never ignore your retirement planning.
If a plan suggest you to invest monthly Rs.1,00,000 but if you are now capable of investing monthly Rs.2,00,000, then first divert this additional money towards retirement. Because who knows when our unplanned retirement may knock us right?