What is retirement planning and why it is important?
September 6, 2019
Retirement planning has always been an issue of concern for all the classes of society. Retirement plans paves way to lead a relaxed and financially stable life after your 60s. All the dreams that people dream, be it owning a farm on the outskirts of the city or a bungalow in a metropolitan, can be true only if the planning was done carefully. They cover both the aspects, social as well as financial. But a question always looms in the minds of the youth and the middle-aged that why is it important. Following reasons are more than enough to ignite such minds
Longer Life Expectancy
With the advent of technology and groundbreaking inventions in the medical filed the life expectancy has increased now from 60 years to approx 80 years or may be even more. So with a longer life comes a need to survive and live in a dignified manner which can only be guaranteed through retirement plans.
Lack of Government Pension
Gone are the days when one can survive on the pension as they are no longer valid. The onset of NPS(New Pension Scheme) has scrapped off the old age pension rules. So if you are in a government job or you are planning to go for them just for the sake of pension benefitsit is sensible not to rely on them, as under the regime of NPS you cannot expect enough returns to sustain a dignified or luxurious life.
Rising cost of Healthcare
Healthcare has become a necessity nowadays with the rising levels of outbreaks (Swine Flu, Nipah, Leptospirosis etc). There has been an exponential increase in the cost of healthcare. The government schemes cover only the poorest of the poor. So instead of selling properties during the time of medical emergencies it is always better to go for a perfect plan.
Working forever is not feasible
After a certain age it is not possible to work with the same interest and energy. Human body wears and tears as the aging process starts. So with a better planning you will not be compelled to do a job after you retire. You can give more time to physical activities like Yoga, Meditation instead of breaking your back on those office chairs and thus you can lead a healthy life.
Compromising with the standard of living
We work hard throughout our life to maintain a particular standard and be acknowledged by the society we live in. After your retirement life should not bombard you with compromises. Why move in from a 2 BHK to 1 BHK when there is an option to go for a 3BHK or a Farm House.
Retirement planning when done carefully can give a quality life to you in your old age. Retirement plan is the pillar which will make you stand on your foot when your own body will stop supporting you.