Most people, especially the youngsters, don’t give much heed to retirement planning. They tend to believe in the common saying – things will eventually fall in place itself. But, what if it doesn’t. What is it’s a hoax?Youngsters today often take retirement as a joke which can have drastic effects in the future. This article will focus on the importance of retirement planning and why you should start planning for it immediately.
Reasons why retirement planning is crucial
Following are some of the reasons why you should take retirement planning seriously:
- Average life expectancy continues to rise
One of the key reasons to kickstart your retirement planning is the fact that people on average are living longer than before. This means that the average life expectancy has increased. With the average Indian lifespan creeping up towards 70 years old, it’s important to realise that you would need a substantial sum to live comfortably in your retirement.
- You can not work forever
You might be rebellious and think you can actually work until the day you drop, and for some, that maybe even the dream, but the fact is you can’t perform your profession at high productivity for your entire life. As you age, you will slow down and certain tasks might become more difficult. Without a retirement corpus to fall back on, you would be stuck in your “work forever” plan.
- Best time to check off your retirement goals
Everyone has a secret bucket list they wish to fulfill in their life. It could be purchasing a house in the countryside or taking that exotic world tour, or even taking up a hobby, or anything. Retirement is the perfect time to go after those experiences and place you’ve seen in photos/videos and always wanted for yourself. When you have enough retirement funds, you can focus on checking off your bucket list rather than worrying about the finances. A wise man rightly said, “live like a pauper today to live like a king tomorrow”.
- Relying solely on your pension or social security can be risky
Althougjhyou’ll be eligible for several benefits from your workplace and the government when you retire, it won’t be enough to cater to your expenses and cost of living. Your pension should ideally work as a supplement to your retirement fund and should not take a huge part of it, or it can prove to be quite risky. You need to have a proper retirement plan so that you can pay for long term costs associated with your health that your medical insurance might not cover as you grow old.
- Your retirement corpus can help to contribute to your family too
Owning a proper retirement fund will enable you to provide lavish gifts to your kids and grandkids. Your retirement will be an excellent time for you to spend time with your near and dear ones. With generous savings, you will be able to plan a vacation with them without putting financial pressure on your kids to pay for everything. You can even chip in if your kids or grandkids need money for their college or expanding their business.
The sooner you begin with retirement planning, the better position you’ll be when you actually retire. Indeed, you must enjoy your life to the fullest but it’s also important to think about your retirement. One of the best ways to build a retirement corpus is by investing in mutual funds. Happy investing!