The old traditional joint family system is not much existing as most of the children have to move out of their cities and go to different places or countries to work.
Things have changed a lot the way we study, work, earn, save and the way we take our financial decisions and take care of our assets and wealth. If you are like most people with less than 20-30 lakhs saved for retirement, eroding money out of these funds to fund your adult child may sound good at the moment, but can be bad for your retirement years. Taking out fund from any one of the two equally important life goals has an impact on one or the other. One should be careful that not taking care of your retirement should not in future be a regret later on, when you would no more be having physical strength to work. It is mostly seen that raising your children is always a priority, even if it raids your own retirement fund. Why to put one bad decision on the other and why not to plan for both of them properly.
Since there is no more traditional family system much in use, the risk of taking care of self and the spouse somehow falls upon the old age people only as in most cases the children live in other cities due to their job and employment or their education obligations. The social security support system is not much prevalent in India, and the provision of pension is also very limited, which cannot alone bear the financial needs post-retirement. Although, the government supports senior citizens by providing some additional facilities, rebates and exemptions, but it is a small amount which cannot manage expenditures of 30 years or so.
As per reports of a survey conducted by HSBC Future of Retirement Study found that while 76 percent of working age people in India expect a comfortable retired life, only 33 percent are actually putting aside money to fund that phase of life.
Earlier you prepare the easier for you
Esta historia es de la edición October 2018 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición October 2018 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
5 Steps To Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.
Microbiome: The Invisible Ecosystem Within us that Safeguards our Health
Imagine being able to heal yourself and build immunity against major diseases without relying on heavy medication. It sounds fantastic, right? Who wouldn’t want that? The key to achieving this lies in a fascinating area of research—our microbiome.
Gold ETFs: Attractive option for retail investors to take exposure to yellow metal
With the equity market experiencing volatility in August, investors are increasingly seeking to diversify their portfolios.
The Retail Revolution: How India's Stock Market Got a Makeover by the Common Man
In the annals of India’s financial history, the stock market has long been the playground of the big boys—mutual funds, insurance behemoths, and foreign portfolio investors (FPIs).
Strategies to adopt when the markets are at a high (for new and existing MF investors)
An investor must have a plan in place and, more importantly, stick to it regardless of shifting market conditions.
A Collaboration to keep Health FirstPNUT and IDA come together as One!
You reap what you sow! And if you sow health, you will reap a healthier tomorrow. Following the same lines, Personal Nutrition (PNUT) and Indian Dental Association (IDA) have come together as partners to promote complete health and nutrition for each individual! How things unfolded? Let’s explore.
Making a choice between equity and debt mutual funds for long-term goals
Mutual funds are quickly becoming a preferred investment choice for millennials.
ASK THE EXPERT
From last Financial Year, I have shifted to the new Tax Regime.
Flexi-cap Fund Vs Hybrid Fund
Investors in mutual funds can choose from equity, debt, or hybrid funds, each offering different risk and return profiles. Flexi-cap funds provide diversification across market capitalisations, while hybrid funds balance equity and debt for stable returns.
Neuroplasticity: You Can Teach An 'Old' Brain New Skill
A few decades ago, it was believed that the brain’s structure and functions were entirely dependent on genetics, age, and early childhood experiences.