Are you in Denial mode regarding your retirement financial needs?

I cannot comment for every one, but too many people I meet are in denial about their financial needs for retirement. Most of us do not want to accept that we will buy 3-4 washing machines, air conditioners, refrigerators, maybe about 2-5 cars, at least one or two houses during our retired life! Imagine you retire at 49 and live till 87. Ask yourself have you ever lived 40 years in one house? have you used one car for 40 years? Ditto for all white goods…so you know what I mean.

And all this buying will happen with our own money – i.e. by selling our mutual funds, unit linked plans, shares, etc. and from our pensions!

Strong financial planning is the key to a comfortable retirement

If you’re planning to spend your retirement in comfort, you’ll need to rely on some pretty strong financial planning. You’ll want to take into account your current financial position and your anticipated retirement income, preparing for contingencies and unexpected expenses along the way. Then you’ll need to develop a strategy for setting aside money on a regular basis to fund your retirement financial planning and choose wise investments so your money will build as much as you need. It’s kind of a daunting task, and it’s no wonder that so many people planning their retirement are worried about the quality of financial planning available in the country.

Benefits of the top financial products for retirement planning – Critical need for Long Term Care Insurance.

There is a critical financial aspect of retirement planning today. If you lose the capacity to take care of yourself and require either in-home assistance or be transferred to a nursing home, all the financial resources you set aside when planning your retirement may be spent in just a few years on the cost of health care. Long term care insurance will cover the cost of your medical needs without jeopardizing the wealth you’ve accumulated for retirement or want to pass on to your heirs. Unfortunately no such insurance is available in India as of now.

From whatever discussion that I have had with a few insurance companies, there is no such plan in the near future also. Choosing the right type of life insurance is also part of planning for the financial circumstances of retirement. If something were to happen to you before you retire, you likely would want your spouse to still have the lifestyle and financial security in retirement you envisioned in your planning, and the right life insurance policy can ensure that.

happy retirement.. Did you know you could ‘Retire Rich Investing Rs. 40 a day?”. I will tell you how….soon!!

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  1. Dear Subra,
    The word retirement always amuses me, I can’t understand why people keeps on talking about retirement when they can work for very very long time,infact till their last breath.
    CA’s, Doctors, Lawyers, by the time they establish their practice they would enter into late 40’s, for them the right time to make some good money begins lately,so,they cannot think of retiring soon, i have seen many of them practising even in their late 60’s and 70’s.
    A teacher or professor can start his/her own coaching centre or tutorias after retiring from school or college.
    A banker, software engineer, maketing guy, accountants, or persons from any field or stream always has ample of scope and opportunities to get occupied and earn reasonably.
    Narayan murthy of infosys sold his some stake in Infosys to start his venture capital business.
    Captain gopinath created low cost airlines Deccan Airlines, sold his stake to Kingfisher to start his air cargo business afresh.
    Their are n-number of examples of the people who never thinks of retirement.
    Once body and mind become idle and empty it invites many ailments, so, its better never to think of retirement.
    Its always prudent to create emergency fund which could support the circumstances where our physical assets becomes susceptible to non-performance.
    I dont know about the future but at present i am the firm believer of about philosophy.
    I hope subra would bless with his comments.
    mansoor panjwani

  2. Mansoor, though there are n examples of ppl who never think of retirement there are m*n examples of people who couldn’t sustain in their old age coz of their poor retirement planning! As we age we gradually loose the physical ability to work and hence require extra support! NRN could sell his stake to create venture capital coz, in the first place, he had the stake i.e. he had planned well for his retirement. Now, what would you do with your retirement corpus is an individual’ call!

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