We just saw…part 1 of ‘should I retire at all’…now here are the hassles – or why I have been having these doubts! Here are the reasons:
Of course the most important question is “Will my corpus last 4 decades….for me and my wife to survive on”…
1. In India we have NO social security at all: If you exhaust your money, well bluntly, you are dead. Period. Not negotiable. Plain cold dead.
2. People who are dependent on Government or other pensions – God bless you if you think it will last till you last! The government will coolly stop the indexing or the pension itself! PSUs will be privatised (we are talking 3-4 decades, and anything can happen).
3. Our medical insurance is a farce BEYOND your age of 65: Most companies will not pay for regular expenses – and the hospitality industry’s pace is higher than inflation! Redefine health and pray.
4. If you have kept the money in safe, solid fixed deposits, inflation will kill your corpus before you die!!
5. If you think ‘Reverse Mortgage’ will save your day. Chill. You can do a R.M. only AFTER your age of 65. I would suggest please try RM only after the YOUNGER spouse turns 70 should you even THINK of RM. Remember the building has to be less than a particular age for the lender to be interested in the deal. To cut a long story short, do not rely on this …EXCEPT as a last resort….
6. Health care is expensive and worse, unpredictable: need I say more?
7. Living beyond a particular age you will need help of all kinds – changing curtains, changing bulbs, banking, cooking,….and this is damn damn expensive, and worse not available in most places.
8. Retirement, well technically is just an exercise in knowing how much you should withdraw. However with so many scams, meltdowns, frauds,…it is well nigh impossible to get the final answer right. Just too many variables for you to get the final answer right.
Now you know what I have been saying, right?
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