Retirement Planning

Being human, we all procrastinate from time to time. We give less importance in our priorities to tasks that are unpleasant or far into the future than those which are rewarding and confronting us today. Similarly, we tend to put off painful but important financial decisions like saving for retirement, compared to funding for an immediate and rewarding goal like vacation. As James Clear says in his best-selling book Atomic Habits- the human brain is evolved to prioritise immediate rewards over delayed rewards. That is why saving money for continuous 15-20 years for retirement fund before your actions deliver the […]

Click to Enlarge Well settled children, zero debt, essential goals met, less responsibilities – this is the typical situation of a retiree. He has saved and invested during the working years and now has a big retirement kitty. His only focus is to manage the same and regularly spend a fixed amount out of it. He may perceive his financial state to be too simplistic. Most retirees hence usually prefer the ‘do it myself’ approach in handling finances. They see retirement as the finishing line after which financial planning becomes secondary to them. They feel they do not need a [...]

Click to Enlarge   While the retirement period marks a new beginning after 60, it also implies the onset of a big financial change in a retiree’s life. This change is about complete reliance on retirement fund and managing the expenses – both essential and aspirational in the absence of a regular income stream. The retirement fund at disposal is typically huge, running into lakhs or crores and it is highly likely that a retiree has never managed such an enormous amount before. The possibility of mistakes is high in the absence of a proper plan to manage the retirement [...]

Many people ask at what age should retirement planning start. And the usual answer is as soon as possible, no matter what the age. However, nobody seriously thinks of retirement in the initial working years. Then there are many goals to juggle in the 30s like buying a house, car, marriage, children’s education, etc. Retirement thus takes a back seat until people enter the 50s. Do you find yourself in such a situation as you are nearing 50 and have not saved enough money for retirement? Are you worried your retirement nest egg will not be adequate enough? While you […]

Priorities for women, both personal and professional, change after marriage. They always put spouse and children ahead of their own goals. In due process, women ignore a lot of their own personal objectives, including their health. This is also true for retirement planning. They lag far behind compared to their spouses when it comes to financially planning for their golden years. This lackadaisical attitude stems from the fact that they are not truly involved in managing their personal finances. While women are active in managing the household budget, other important financial matters relating to insurance, investments, banking, etc., are being […]

Retirement the golden phase of your life where all your responsibilities are over both personal and financial. You have all the time in the world to pursue your passion and chase your dreams. But the onset of retirement also marks a big financial change in an individuals life – a change in saving and spending pattern in the absence of a regular income stream. The main concerns of every retiree are: Generating a regular income stream Safety of corpus, i.e., capital protection Meeting contingency needs, incl. medical emergency Long term growth of the corpus The last point is something which […]

When we talk about retirement planning, it is usually perceived in terms of how much funds to save, where to invest in twilight years, etc. The focus is essentially on getting finances in order and accumulation of adequate savings. But retirement planning is more than this math. It is also about starting a second innings in your life, akin to rebirth. Many people dream about the day they will be able to retire, be relieved of all major responsibilities and have time to relax with family. While the thought of not being tied to your job can be very relieving, […]