When asked about Retirement, normally people are in a denial mode. Why even ask them ‘What will your family do, if you drop dead’…is a question they hate to hear. They even hate me for asking these questions. It is difficult to know what to do…so best is either do not do anything or speak to a friend who is also done nothing.
Of course one answer that is brilliant is…”I have bought a pension plan where I am putting Rs. 10,000 per annum as a premium”. Cross your heart and tell me “what is happening to that money?”. Not sure, but the accumulation in this plan is likely to pay for your morning newspaper and perhaps a cup of tea! You bought that a few years ago because somebody told you there was a tax break. Correct? Now that is your tax-plan, not your retirement plan dude!
Are you in Denial mode regarding your retirement financial needs?
I cannot comment for every one, but too many people 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!
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 INDEPENDENT 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.
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.
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