Why do you need to plan for retirement?

Can you imagine your future with the financial support from your family if you didn’t see the value in planning for retirement? It would then become your children’s responsibility to take care of you. In your retirement, you shouldn’t be dependent on anyone, let alone your own family.

- Madhu Sinha

Having a firm plan in place will make sure you don’t become a financial burden on those you love the most. I am sure you would like to be in a position to help out a family member in case of need for finances arise rather than being dependent on your family. The goal of retirement planning is to achieve financial independence, so that the person should not be compelled by circumstances to work after retirement.

People who are not able to accumulate adequate retirement corpus may have to postpone retirement or look for another job when retired from existing company.

Top Highlights from the Survey

• The conventional model of stable employment and retirement by 60 is increasingly out-dated

• People like to plan for happy outcomes and/or unknown eventualities and not for unhappy outcomes or known eventualities like retirement.

• Elements like break up of joint families, presence or absence of alternate sources of income and fear of dependence on children in old age are playing important roles in people’s attitude to retirement.

• Indians living in a joint family system feel more financially secure and this is still perceived as an important supportsystem in retirement.

• Safety and security as an association to money is shifting to fulfilling dreams and having a better life.

• Urban Indians are saving and investing less while allocating nearly 59% of their income to current expenses.