Retirement: Myths & realities

Abhay Rao
Posted: Sunday, Jun 28, 2009 at 2301 hrs IST
Updated: Sunday, Jun 28, 2009 at 2301 hrs IST

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: Retirement is like a long vacation in Las Vegas. The goal is to enjoy it the fullest, but not so fully that you run out of money. - Jonathan Clements

Every retirement product advertisement seen seems to emotionally urge the middle aged to start planning for retirement early, for while the old couple walking in the park look cute, the car substituted by a bus ride home, doesn't have the same appeal to it. On the other hand, the idea of doing nothing all day and having the money to support doing nothing does seem to put a smile on many a face. Retirement planning is no rocket science, it's no one product miracle. In fact, it is something that one can very easily and consciously make a part of our lives. The trick is avoiding some of the most common and human errors one tends to make, whenever dealing with something far into the future or something that one feels will not really be an issue to them.

While people have done wonderfully post retirement, some have started businesses and others have followed their dreams, there have been an equal number of cases wherein people have been suddenly left with little or no support and the stark reality of old age and expenses to live through. The main difference between the two circumstances was simply retirement/financial planning. After all, very little can take precedence over planning for the future, that too, the future, which may see you without a steady income or job.

Sujit Ganguli, head, marketing and senior vice president, ICICI Prudential Life Insurance tells us, "One must realise that retirement planning is one of the most important parts of financial planning in a person's life. Generally, retirement plans being a part of the future tend to take a back seat when it comes to money management. Most people are more focussed on short-term goals and expenses like buying cars, electronics, spending on weddings, college expenses, etc"

Myths

You need a large income to be prepared for retirement

Shinde has worked as a railway officer in the Indian Railways for the past 35 years. With a modest income and big dreams of sending his kids to study where they want, it was the small steps that helped him realise his dreams. Saving a simple Rs 10,000 a year and investing it in a good retirement and pension plan, saw Shinde, with...

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