Retirement worries…
Most people who talk to me are worried about 3-4 things in Retirement. Nobody seems to be worried about death – death is perhaps welcome once their ‘responsibilities’ are over.
What worries them about retirement:
a) Will we out live our corpus: apart from usage assets (assets that are held for usage, not appreciation or income) I guess a person needs say 30 times the annual expenses at the age of 60 – called the retirement age.
Solution
If you withdraw say 6% from the corpus and YOU DO NOT WITHDRAW from this corpus FOR any other purpose, you should not have any great worry about outliving your corpus – if you are lucky enough to die before 90 years. If you live to age 116, God bless you. Ask your GREAT GRANDSON to help you.
b) Will inflation make us compromise on our standard of living: Clearly depends on your current standard of living. If you eat out 3 times a week, keep a cook, 2 maids, 1 driver, and have a commitment to all branded items, well you surely have a worry. The cost of branded goods increase at a much much higher rate than normal inflation. Say inflation in unbranded goods is about 8% p.a. – branded could be as high as 20%p.a.
Solution:
Either invest very heavily in equities now – and hope for a nice boom, or adjust to a lower standard of living. Remember ‘Santushti hi Sampathi hai’
c) Long Term Care and Insurance: If I am alive and need a lot of attention will I be able to afford treatment? If I live with dementia or alzheimers will there be an organisation which can ensure a day care and help me?
Solution: You can expect a product like this will be available soon. Hopefully. I am hoping to buy one!!
Milind N
All this boils down to one simple thing…Keep Lifestyle Moderate or as similar as we are used to in First 20 -25 years of life…and do not compare “With Onida “of neighbours.Instead we need to put diffrence between our High salary and same lifestyle as till 20 -25 in Growth Asset like equity ,preferably with Good Fund House and Manager like Prashant and Naren and Keep even Investing Life SIMPLE …..CONTENTMENT as a Virtue needs to be at display in our Behaviour to tackle Retirement Blues !
Mahesh
“I am hoping to buy one!!” — The keyword is BUY … people will start investing in one 😛
Praveen
There is more risk of dying without enjoying as per our saved corpus then of out living our corpus
subra
Praveen
i do not know your age, but I do not know of anybody who knows anybody who can see 50 years in the future. If you are one, more power to you.
Pothanna
I am not agree with the concept of ‘retire at the age of 60’. My view is we should come out of our main job at the age of 40 itself. Then do a part time job like lecturing, consulting etc. and involve in other activities[like bird watching, reading, gardening, traveling,fishing etc…] in the free time. There are plenty of activities are there to do which we cannot to after retirement[after 60]. Suppose an example, If we start making our own farm with different varieties of trees, but most of the time we will not be there to enjoy when they grown like big trees. This is reality.
Therefore earn good amount money up to age of 40 years. Then quit that job, move to some small city or village(country side) take new part time job. Start making your farm. fully retire at the age of 55 or 60. and then fully spend your time in that farm.
Advantages
1) Cost of living will be very less
2) Your growing required food items, vegetables in your farm(0 cost)
3) Good exercise to body, good air , peaceful life.
4) No need worry about retirement carpus ( I hope you must have good amount of money)
etc…
Praveen
Sir, My age is 28
subra
wow Praveen which means u can see 60 years in advance.
Praveen
no sir 🙂
Just mentioning a thought., nothing more then that