Do You Want to RETIRE or RE-TIRE?

When do you want to RETIRE…Yes you heard it right…You have a CHOICE provided you choose to ACT SMART!

How do you want your retirement to be????

Retirement should be Happy and Satisfying...then only it will fit into its Definition Right. A lot of people are working post Retirement Now-a-Days as they cannot afford to stop working as not working will mean No Income and then only the Realization will comes that How Important this Need is.

The sad part is that The NEED for Retirement is considered only few years before approaching retirement, in such cases the vision usually gets blurred due to absence of adequate resources.

Also, this need requires more attention in today’s Time. Earlier our Grand Parents or Parents were not so serious about this need for Retirement Planning as Retiring Then and now is different in too many Aspects:

                     Retiring In 1980

  • EXISTENCE OF JOINT FAMILY SYSTEM
  • EASY TAXATION LAWS
  • LOWER ASPIRATIONS IN POST RETIREMENT PERIOD
  • HIGHER INTEREST ON BANK DEPOSITS
  • LOWER LIFE EXPECTANCY

 

            Retiring in 2013

  • EXISTENCE OF NUCLEAR FAMILIES
  • STRINGENT TAXATION LAWS
  • GROWING ASPIRATIONS TO MAINTAIN PRE RETIREMENT STANDARD OF LIVING
  • BANK INTEREST RATES ARE MARKET LINKED AND VOLATILE
  • HIGHER LIFE EXPECTANCY

 

They were Lucky enough to manage with whatever they had in those easy times but we have no ESCAPE

Someone has rightly said….You can be young without money, but you can’t be old without it.”

Again to support what I am saying we have so many Bollywood Movies to which each one of us can connect very well. They teach us a Lesson out of them. The famous ones are:

  • Baghbaan- Amitabh Bachan consumes his entire savings for his children, he sells his home and divides the funds amongst his sons and he is left on his own without any support from his sons.
  • Munnabhai MBBS- In the very first scene, a  Man drops his father to an old age home and on his father’s birthday Munnabhai hangs him outside his window to make him Recall about his birthday.

An average Indian Psychology is something like this:

Age

 25-60

60-80

 

Accumulation Phase

 Marriage(27) Y

Home Purchase (33) Y

Investments (35) N

Car purchase(35) Y

Life Insurance (38) N

Foreign Holiday(42) Y

Child Education (45) Y

Child Marriage (50) Y

 

   Consumption Phase 

Retirement (60) Y

Health Insurance (60) N

Holiday (62) Y

Charity (65) Y

Inheritance (68) Y

Hospital(75) Y

Estate/Will Planning (78) N

Few Years ago, A survey was done by American Bureau of Labour for people retiring at Age 60 who started working when they were 25. Out of them:

  • 1% were wealthy
  • 4% were maintaining their standard of Living
  • 9% were Dead
  • 23% were still working …can’t afford to quit
  • 63% were dependent on Children & Charity

Which category do you want to Fit in Choice is Yours!!!


The Crux is “In the Old age Money May not be everything but it is far more Important than Oxygen.”

What Do You Think??? Do let us know in the comments section.

Gurleen Kaur is a Financial Consultant and devotes her time to her company www.hareepatti.com. She has done her Bachelors in Finance and Investment Analysis(BFIA) from College of Business Studies(CBS, Delhi) and MBA from IMT, Ghaziabad. Currently she is also pursuing her studies in order to become a Certified Financial Planner.

She can be Contacted at [email protected]

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