Experiencing Cultural Shift, It Is Must To Have A Retirement Plan!

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.

- Kapil Rangwal

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