Why retirement provision needs a careful game plan

Retirement is the one word that most of us don’t think about until well over thirty or forty. Failure to properly plan your retirement can lead to stress and anxiety, just as you would maintain yourself if the regular paycheck stopped coming. In the later years of working life, this task of retirement planning may indeed seem herculean.

To meet Mrs. Jayshree Tripathiwho has lived in different cultures for over thirty years. Her late husband was a professional diplomat in the Indian Foreign Service. She reveals how, due to a lack of multiple incomes, they have repeatedly been put off to financially plan their retirement. “There really wasn’t much talk of investing and retirement among young diplomats. Due to family obligations, we could not “save” for many years. In retrospect, I realize that I left all of the planning for my retirement to my husband! But then we lived on a single income. He gave me most of his salary, with the exception of the mandatory deductions. I tried to save a bit of it, but it was usually spent on unexpected guests or a few extras for the kids. “

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Jayshree adds that they didn’t start saving until she and her late husband were in their early 50s. “We could save a little more and invest in retirement. When the two older children went to college and then started to work, we still had the youngest with us. After completing his studies, we decided to pay more into our retirement provision. In the end, after 36 years of service and at the age of 60, this turned out to be a blessing in May 2015. “

Experts say planning for retirement needs to be done early. Financial advisor Ratnasri Karra says: “Physiologically, the body slows down with increasing age. Hence, it is important to keep thinking about what you want and to reconsider the priorities of your life as you get older. When you know you have a secure income, a roof over your head, and don’t have to worry about tomorrow, you’ll do the things you want to do. ”Ratnasri also speaks of priorities changing when one grows. “As you get older, your health expenses could really increase. Often your health insurance does not cover the costs. It’s good to have a plan that keeps track of such unforeseen expenses. ”

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Women always take a back seat, adds Ratnasri. “For everything, not just for old-age provision. And that has to change. ”Meeting Tanushree Podder, an army woman who gave up corporate life to write books. She highlights an important issue. The fact that women often end up outliving their spouse and thus financial planning for the retirement years is a wise decision. “With a steadily increasing life expectancy and employment limited to a certain age, old-age provision is becoming an important part of life,” says the bestselling author.

It is important to keep thinking about what you want and to reconsider the priorities of your life as you get older. Having a secure financial situation at this age will help you reach that point in life – Ratnasri Karra

However, retirement planning is not all about medical bills and survival. It’s also about enjoying life, something most of us postpone until retirement due to work and family responsibilities. Money shouldn’t be a barrier when you finally have time to do what your heart desires. Podder says, “If you want to continue enjoying the lifestyle that working life allows, you have to take precautions. It is also important to maintain financial independence in order to lead a dignified life. Today the number of sunset years is higher than working life. “

Sabbatical and money matters

She adds, “Having a retirement plan is imperative for a woman because she has a good chance of surviving her spouse. A constant flow of money also contributes to the feeling of security. In addition, a good retirement plan enables her to fulfill the plans that have been carefully saved in the bucket list. ”

So when is the right time to start retirement planning?

“As soon as you start earning!” Says Ratnasri Karra. “My aunt always told me that whenever you make money, always spend something, save something and invest something. So if you keep this balance right from the start, you will always be happy and safe at every stage of your life. “

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It is also often observed that women and men approach retirement provision differently. Podder suggests that the fundamental difference between the two is that women are more conservative than men when it comes to financial planning. “It has been found that women are generally less willing to take risks. For example, I don’t take risks, while my spouse has no problem investing some of their money in high-risk, but high-yielding products. “

If you want to continue enjoying the lifestyle that working life allowed, you have to make provision for it. It is also important to maintain financial independence in order to lead a dignified life. – Tanushree Podder

Many women have no idea about financial planning and investment opportunities. Some don’t take it seriously and some depend on the spouse to do the planning. Even the most educated and independent women often lack the necessary willpower and education. “What most don’t know is that the value of money is constantly eroding. So if you save 1 lakh today, it will only be about 13,000 after 30 years. That is, if inflation is contained at 7%. There are other factors that determine retirement savings. A woman can take a career break to have a baby or take a sabbatical to do the things she wants to do. In such cases, having a decent nest egg is doubly important. Most young people feel that it is too early to start planning for the sunset years. The truth is, it’s never too late to start planning. “

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Ms. Tripathi also agrees that men think differently about saving and investing than women, and this has a lot to do with being the main breadwinners of their families. Regarding her personal experience as a diplomatic woman who lived as an expat for three decades, she says: “Diplomatic wives participated in many voluntary activities for charities. Not only did we have to take care of our families, but also local and foreign dignitaries who visited us. Most of the spouses on our missions were not working. Who could, could save. Few jobs, such as teaching, were available and allowed. Times and rules have changed for the better in the last ten years. ”Today there are many double-income families serving abroad. Young women invest wisely for their own future and for their children.

TAKE

  • Many people delay planning their retirement into the later decades of their working lives.
  • Proper retirement planning not only ensures that expenses are covered, but also enables you to enjoy the normal lifestyle while at work.
  • When is the best time to start retirement planning? As soon as you start earning.
  • Before investing, ask yourself what rate of return you expect from your retirement savings.

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“I would suggest that women who are well off in their 30s should invest wisely. Plan for medical emergencies because life throws away a lot of lemons that are difficult to handle and result in unexpected expenses. That is very stressful with increasing age. “

So how do you go about retirement planning?

Podder shares their proven strategy of not putting all your eggs in one basket. “A variety of investments work for me. My investments are a mix of traditional and new instruments. I have invested a reasonable amount over the last few decades of my professional life. Most of my money is parked in low-risk investments that don’t pay excessive dividends, but give me a good night’s sleep. “

I would suggest that women who are well off in their 30s invest wisely. Plan for medical emergencies because life throws away a lot of lemons that are difficult to handle and result in unexpected expenses. – Mrs. Jayshree Tripathi

Karra advises: “Saving is the first step. Whenever you start making money, always set aside some cash for that rainy day. Once you start putting it aside, make sure it grows by investing it properly. Sometimes people start planning early, around the age of 24-25, I know because I’ve met young people who are so disciplined. But then there are those who may be missing that bandwidth and who start out a bit older when they have a family. But I would say no time is a bad start. It’s important for your future because I’ve seen people close to retirement who are still trying to figure out where the money is coming from and some have to go back to work at this point because they run out of money. So it’s not a bad time to think about it. “

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Women and Money in India

We couldn’t let go of Karra until we asked her what to consider before starting planning your retirement savings. To which she replies: “You have to make sure that it cannot be very risky, at least not if you only start at a later stage in life. Whatever product you have invested shouldn’t be too risky as you may not be able to make any money at this point. So you don’t want to risk your hard-earned savings at this point. And in terms of the type of return on investment, you need to weigh up the type of lifestyle you want to lead after retirement. So somewhere you have to dive deeper into yourself to understand what you want. ”

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