Only you retire, not your needs...

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 



Only you retire, not your needs and wants....

Our retirement is not that far away as we think and visualize. If we look back, we would be astonished to find we have traveled a long way from our college days.. Time travels fast and quick. And we live in a world of uncertainty. Uncertainty surrounding our jobs, career, future, next gen etc., Our times are far more unpredictable compared to the times of our parents. And trust me, no one likes to retire, for the simple reason that our incomes also retire. 

We have never seen a single cricketer calling it a day with a broad smile on the face. But reality bites. All have to retire someday and the prudence lies in making mental and financial preparation to deal with retirement.

A recent survey on retirement in India throws interesting insights into the subject. Let's see the top concerns which have been listed in the survey responses:

1.  Health care in retirement years.
2.  Having to work in retirement years.
3.  Providing for long term needs.
4.  Outliving retirement money.

 The survey goes on to say that, a whopping 85% of the working population have not planned for their retirement yet. And this is not an encouraging sign of the times. I always wish to say, that 9/11 has changed the global security scenario for ever and year 2008 has changed the global economic scenario for ever. We might never see calm markets for a very very long time. 


Why do we need retirement planning? Let's look at some of the numbers...

If you were to retire today and need Rs 50 lacs for the retirement fund, can you imagine what would you require to match the same amount 20 years later?

Rs 8.18 Crores

If you need Rs 30,000 for monthly expenses, can you imagine what would you require to match the same amount 20 years later?

Rs 4.90 Lacs

If one needs Rs 5 lacs for health care expenses now, can you imagine what would you require to match the same amount 20 years later?

Rs 81.84 Lacs

Remember, only you retire... Not your needs and wants.


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)