Several people do not plan adequately for their retirement. They keep putting off retirement planning until it is too late to accumulate a sizable sum of money. Retirement planning indicates an investment plan which is carefully detailed and should involve building up a fund which will ensure adequate support for 30-40 years at least.
There are many people who prioritize goals like the education of children, home buying, marriage of daughters, getting out of debt and starting their own businesses ahead of planning for retirement. Most people are aware of how retirement is a major goal but they think that it is a selfish objective. While one is taught to provide and think for others in the family, planning for retirement is a must in order to build up the right corpus which will serve you well in the future.
There are many people who only consider their retirement when they are at the fag end of their careers. However, this trend is changing steadily and people are now more open towards planning for retirement from an earlier stage in their careers. Most people put off retirement planning since they feel that it is too early to plan this out. Suppose someone is only 28-30 years old and the biggest priority at this juncture may be purchasing a home and increasing one’s monthly income. When someone of this age is asked about planning for retirement, the answer usually is that it is too early to consider this aspect.
However, there is a major issue here since most people do not grow out of this phase even in their 40s and they regret not starting sooner when they are between 45-50 years of age. Although your retirement may be far down the line, you would always need a huge amount and the earlier you start saving, the better it will be for your own comfort. Many people also put off retirement planning since they cannot suitably visualize or know their eventual retirement objectives.
Most people do not realize that their salaries will not always be credited to their accounts a few decades down the line. They do not realize that their health may not always be in great shape and their children may not be able to properly take care of them in the future. Several successful people passed away poor and struggling to cover their financial needs.
People also put off retirement planning since they do not have an investible surplus left over at the end of the month after meeting all necessary expenses. Income does not increase as fast as growing expenses. It is also tough to save in metro cities especially for those who already have families. If faced with this situation, one should start saving as much as possible and try to increase income to the maximum possible limit. You should start small with something like around Rs. 1, 000 every month and then scale up gradually. You should realize that investing an amount of around Rs. 10, 000 every month will help you get a sizable corpus of 3-4 crore after a period of 30 years.
Many people also make the mistake of banking on their kids to take care of them and put off retirement planning. However, there are no guarantees that your kids will be in a financially sound position when you retire. As a result, you should have some funds saved up for meeting your retirement goals.