Finding retirement solutions is something that most people consider at a later part of life. We are so busy in our lives that sometimes we don't observe how fast things are changing around us. Most of us don't think about consequences of these rapid changes. However, this situation is changing fast and few years from here retirement planning might become your first priority. If you don't act now then you may find yourself in lots of trouble at the later stages of life.
If there are any doubts in your mind then consider these points which may change your investment strategy.
1. Rising inflation : Costs are increasing at a rapid pace. Due to this even people with good monthly income are having problems with their budget. If you think that the rise in inflation rate is not constant and it may come down in future then you must rethink. Yes, inflation rate is not constant and prices may come down. But history tells us that there has always been an increasing uptrend in the prices. Few factors such as global warming, frequent floods, draught are causing the food prices to rise year after year. The overall population of the world is increasing like never before. Due to this there is a huge increase in demand of all commodities which includes oil, food and other things which we use in our daily lives. We also know that constant decrease in crude oil reserves are not going to help. It is almost impossible to imagine what the world will look like 30 years from now and what the prices will be when you reach your retirement age.
2. Decline of Joint Family System : Our social system is changing and its going the western way. More and more youngsters are willing to stay away from their parents and live separately. It is also because for higher education most of the youngsters have to go to cities other than their hometown. Thus they develop a habit of living a life of freedom. Some kids are forced to leave their parental home because they are offered jobs in cities other than their hometown. So when children shift away from home parents are left with not much support.
3. Loneliness : You may not agree that money is sometimes required to reduce loneliness at an older age. But I am 100 % sure that once you grow old you will . When we are young we get a lot of importance from our parents as well as from our close relatives. Just look around and try to find people who give lot of respect/importance to their old age relatives ( who don't have any source of income ). You may find very few of them. But if you think of your other relatives who are old but still earning members of their family ( through business, some job, investment or pension ), you may find that still they are given respect/importance from others. It's sad but true. Though there are many people who treat elders with respect but still they may not be able to give enough time to their elders. It has been found that all this problem generally starts with an old age and never ends. Being lonely in life is a very uncomfortable situation which nobody wants. If you do not trust me then ask the old man in your house.
4. Medical costs : Due to inflation even medical costs are increasing. Imagine what the costs will be after 30-35 years. You may consider that taking a health insurance will solve the problem. But then there is lot of thinking required for it. Most of the people buy health insurance of up to 2-3 lac rupees. But what we don't consider is the medical cost required at the time of retirement. Also money is required to pay the premium for health plan which might be difficult for someone without a pension. It is also important to note that a health plan does not necessarily include expense of medicines, injections, medical equipments etc. It is needless to mention that these things are required more often at an old age.
At an older age very few have the courage, stamina and options to start earning again. On top of that pension related jobs are also decreasing. So to avoid these problems retirement planning is a must. Nowadays retirement plans provide monthly income without any hassle. However if some other plan promises better returns then it can also be considered. So plan now and retire rich.
If there are any doubts in your mind then consider these points which may change your investment strategy.
1. Rising inflation : Costs are increasing at a rapid pace. Due to this even people with good monthly income are having problems with their budget. If you think that the rise in inflation rate is not constant and it may come down in future then you must rethink. Yes, inflation rate is not constant and prices may come down. But history tells us that there has always been an increasing uptrend in the prices. Few factors such as global warming, frequent floods, draught are causing the food prices to rise year after year. The overall population of the world is increasing like never before. Due to this there is a huge increase in demand of all commodities which includes oil, food and other things which we use in our daily lives. We also know that constant decrease in crude oil reserves are not going to help. It is almost impossible to imagine what the world will look like 30 years from now and what the prices will be when you reach your retirement age.
2. Decline of Joint Family System : Our social system is changing and its going the western way. More and more youngsters are willing to stay away from their parents and live separately. It is also because for higher education most of the youngsters have to go to cities other than their hometown. Thus they develop a habit of living a life of freedom. Some kids are forced to leave their parental home because they are offered jobs in cities other than their hometown. So when children shift away from home parents are left with not much support.
3. Loneliness : You may not agree that money is sometimes required to reduce loneliness at an older age. But I am 100 % sure that once you grow old you will . When we are young we get a lot of importance from our parents as well as from our close relatives. Just look around and try to find people who give lot of respect/importance to their old age relatives ( who don't have any source of income ). You may find very few of them. But if you think of your other relatives who are old but still earning members of their family ( through business, some job, investment or pension ), you may find that still they are given respect/importance from others. It's sad but true. Though there are many people who treat elders with respect but still they may not be able to give enough time to their elders. It has been found that all this problem generally starts with an old age and never ends. Being lonely in life is a very uncomfortable situation which nobody wants. If you do not trust me then ask the old man in your house.
4. Medical costs : Due to inflation even medical costs are increasing. Imagine what the costs will be after 30-35 years. You may consider that taking a health insurance will solve the problem. But then there is lot of thinking required for it. Most of the people buy health insurance of up to 2-3 lac rupees. But what we don't consider is the medical cost required at the time of retirement. Also money is required to pay the premium for health plan which might be difficult for someone without a pension. It is also important to note that a health plan does not necessarily include expense of medicines, injections, medical equipments etc. It is needless to mention that these things are required more often at an old age.
At an older age very few have the courage, stamina and options to start earning again. On top of that pension related jobs are also decreasing. So to avoid these problems retirement planning is a must. Nowadays retirement plans provide monthly income without any hassle. However if some other plan promises better returns then it can also be considered. So plan now and retire rich.
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