Retirement is crucial in India due to several key factors:

  • Increasing Life Expectancy : A retirement corpus must be substantial enough to support 20 or more years of post-work life, considering today's average life expectancy of 70+ years.
  • Changing Family Dynamics : The shift from joint to nuclear families has increased individual financial responsibility, emphasizing the importance of savings, investments, and retirement execution.
  • Rising Healthcare Costs : To safeguard financial security, retirement plans should prioritize healthcare needs, considering 10-15% annual medical expense inflation.
  • Inflation Concerns : Ensuring long-term financial security demands investment portfolios that consistently surpass the 6-7% average inflation rate.
  • Inadequate Pension Coverage : The majority of India's working population lacks access to formal pension schemes, leaving them vulnerable to financial uncertainty in retirement.

Key Takeaways:

  • Start strategizing early
  • Invest wisely
  • Factor in healthcare and inflation
  • Consider alternative income sources
  • Seek professional guidance