CHANGING TIMES, CHANGING NEEDS Thanks to the advances in modern science, the average
life expectancy is continuously increasing. Changing
trends show that the non-working life of an individual
is longer than his working life. While the social security
systems in developed countries have evolved, the one
in our country is virtually non-existent. Joint families,
which inherently provided such security, are increasingly
being replaced by 'nuclear families' and the fact is
when you retire and stop working, expenses do not. And
as time goes by, your responsibilities and expenses
will only tend to increase.
It pays to anticipate and plan in order to maintain a lifestyle
you have become accustomed to and also to meet with any eventuality
that life may bring your way once you retire.
Scenario No. investment
No. of years
Your monthly
Annually
Total
Value of your
you save
Case A
15
6000
72,000
10,80,000
19,36,000
Case B
20
5000
60,000
12,00,000
26,32,000
THE FINER POINTS
A good retirement plan helps to preserve and accumulate capital,
sustain your income without compromising o n your lifestyle
& meet long term family obligations. Inflation can eat up
savings and much to one's chagrin the left over may be insufficient
to maintain a similar life style. Medical expenses too are
on rise. The basic requirements of life change as distinction
between luxuries & necessities disappear. Therefore, a sound
plan needs to be in place. What makes it all the more important
is the trend of reduced interest rates. What does it signal?
Simply put, higher savings and investments from you.
THE BEST TIME TO START RETIREMENT PLANNING IS NOW
Those who do not plan for the future have to live through
it anyway. So the sooner you start planning for retirement.
