We are so much engrossed in our daily routine that we almost forget to plan our retirement. Most people, especially the youth, don’t give much attention to retirement planning. They tend to trust the common saying that things will eventually fall in place itself. But, what if it doesn’t? What if it’s just a hoax? This article will emphasize the importance of retirement planning.
Reasons why retirement planning is important
Following are some of the reasons why you should take your retirement planning seriously:
- Average life expectancy tends to rise
One of the main reasons to kickstart your retirement planning is the fact that individuals on average are living longer than before. This means that the average life expectancy of people has increased. With the average lifespan of Indian citizens creeping up towards 70 years, it is essential to realise that you would need a considerable sum to live comfortably in your golden era – retirement.
- You just can not work forever
You might be defiant and think that you can actually work till you drop, and for some, that may even be the dream, but the fact is you cannot perform your profession at high productivity for your whole life. As you grow old, you slow down and certain tasks tend to become more complicated than before. Without a retirement portfolio to fall back upon, you could be stuck in your “work forever” idea.
- Checking off your bucket list
Everyone has a secret bucket list that they wish to achieve in their life. It could be taking that exotic world trip with your loved ones, or buying a farmhouse in the countryside, or even taking up a hobby, or anything else. Retirement is the perfect time to go after those experiences and places you have come across on Pinterest and always wanted to experience that for yourself. This is possible only when you have enough retirement funds in your corpus.
- Relying entirely on your social security or pension can prove to be risky
Although you would be eligible for numerous benefits from the government and your workplace when you retire, it wouldn’t be enough to cater to your expenditures and standard of living. Your pension must ideally work as a supplement to your retirement fund and should not be a massive part of it, or it can prove to be quite risky.
- Contributing to your family
Owning a proper retirement corpus will help you to provide extravagant gifts to your kids or grandkids. Your retirement period is an excellent time for you to spend quality time with your loved ones. With generous savings, you’ll be able to plan a trip without exerting financial pressure on your kids to pay for all. What’s more, with a proper retirement fund in place, you can even chip in for your kids/grandkids future expenses.
Remember, the sooner you start with retirement planning, the better position you will be in when you actually retire. Happy investing!