Retirement is a time when your monthly income stops but your monthly expenses don’t stop. Many people often ignore retirement planning when they are earning with an assumption that they can depend on their children or relatives for their financial needs post retirement. However, when the actual time comes, they learn the hard way and end up compromising even on basic necessities.
Some key reasons to start retirement planning as early as possible:
To be financially independent
Expenses for household, travel expenses, lifestyle and health require adequate finances as long as one is alive. With each passing year the lifespan of people are increasing due to better living conditions and medical facilities. Hence it is necessary to have a regular source of income. This can help one to remain financially independent even after retirement take care of various expenses.
Rise of nuclear families
With joint-family systems are on the decline, the number of nuclear families are rising day by day. Due to this, nowadays there are more number of senior citizens who live on their own. This trend is likely to increase over the next few decades.
Given the huge spike in inflation consistently over the last few decades, monthly household expenses post retirement will go by 3-5 times. This will put a heavy burden on one’s pockets especially in the absence of regular and guaranteed income.
Increasing health issues with old age
As age increases, health problems are also likely to increase. Stress, poor sleeping habits and lack of adequate exercise during working years often extracts a toll on one’s health post retirement. Despite advances in medical technology, the treatment costs have also gone up significantly. Lack of adequate and regular income after retirement can result in a compromise on good treatment.
When you are financially independent you can enjoy and live life on your terms without depending on anyone. With regular income even after retirement, one can enjoy life and follow their passions and hobbies. Retirement planning using a pension plan that offers guaranteed income on a regular basis can help you lead a comfortable retirement life without worrying about money.
– Written and contributed by Pradeep Sukumaran.