Whether you realize it today or not, living a dignified retired life after 60 needs some effort and thoughtful planning.
These 5 minutes of your life that you’ll spend reading this post might help you shape 25 years of your retired life after 60.
Coping up with expenses after retirement
I hope you are aware that at current rate of inflation the expenses of Rs 50,000 per month today (march 2022) will be 1,60,000 per month after 20 years. Even if you leave aside the current rates, would you agree that, due to inflation, monthly survival expense of 50,000 today would possibly be 1,00,000 in coming 20 years.
You would still be able to cope up with your expenses while you are earning i.e. up to your retirement age. But, what about the expenses after your retirement? After your retirement, your active income would stop but your life’s expenses will not and would further increase year on year.
You have got 3 options on how you choose to live your retired life
Option 1. Be compelled to work even beyond your retirement age for earning money to meet your expenses
Option 2. Be dependent on the society or your son/daughter, for not being able to create enough passive income to survive on your own, and
Option 3. Plan and create a retirement fund and regular income system that will enable you to live an independent, happy and stress-free retired life.
Be Needy or Be Needed?
Which one of the above 3 options would you like to choose? Of course the 3rd option, right? You are living a life of giving, providing to your family and would surely like to continue with the same life of dignity. It would be a pity if you and your spouse have to depend and take from your son/daughter for survival after your retirement.
Retired life facts in India
If you still feel that this is something trivial, here, I will share with you the fact that in India around 63% of population above the age of 60 are dependent on other people, on their children or on the society and leading a miserable life (with limited or no freedom).
No need to say that this 63% includes people from all income groups and occupation background.
Do you have a retirement plan in place so that you can live your retirement life (probably another 20-30 years beyond your retirement) with the same respect and dignity?
If you have already started saving and investing for your retirement, great, just do a check-up whether everything is planned well and are on track. If you have not thought of it seriously yet, it’s high time you take a firm first step. Because, whether you want it or not, it is going to arrive.
Take some effort ‘today’ for the most important financial plan of your life. It is never too early to plan for your retirement.
Remember, you can avail a loan for all your financial goals but not for your retirement.
Issues to cater to
You might still feel that you have so many years to accumulate money and with the increase in your income in coming years you can easily create something that will last your whole life. But, there are few issues:
Issue 1. With the increase of your income your survival and lifestyle expenses will also increase and you might end up with similar financial situation as today as far as surplus money is concerned.
Issue 2. It is very difficult to create huge funds even with higher sum of periodic investments if the time horizon is low, and
Issue 3. With interest rates decreasing, (20-25 years from now it will probably be 1% or less) you will need a huge corpus in future to generate a monthly income that can cater to your then monthly expenses.
Now, how much future retirement corpus you would need, how to achieve that amount, which instruments to use, how much to invest in each instruments and till what period you should stay invested, all these will vary from person to person with factors like age, requirement, risk appetite, mindset and current financial capacity.
Do not delay your retirement planning
Today, even if you have a minimum amount to save, do it. Do not wait for that huge monthly surplus to happen in your life to start saving (and investing) for your retired life. You can create greater funds with smaller investments if you give that investment enough time to grow big, and a year of delay can cost you in lakhs.
If you would like your friends to know about this you are welcome to share this post with them as well.