The Second Innings of Life

Nikita Vete

India is the second most populous country after China with a population of 1.38 crore. While India has a very young demography, on the other hand its ageing population is seen to have a steady rise. It is predicted that the Senior Citizen population will contribute almost 16% of the population in 2041, which is almost double of what was predicted in 2011.

Have you wondered how many people that you know will be part of these numbers?

Now that you have given a slight thought on that, let us ponder some more. What do you think, have these individuals considered doing their retirement planning? To understand this situation better consider your parents, have they given a serious thought on it? or if they are retired – was their planning sound?

Most of the investors consider Retirement Planning as a herculean task, leading them into procrastination. For others, it is their ‘children’ who are their retirement plan. Both the mentioned situations can cause a sever distress in future.

So what can be done to create the most suitable retirement period?

Firstly, one needs to understand the real meaning of retirement is to connect with it. All our lives, we travel through three stages, the Learning Stage followed by the Earning Stage and lastly the Spending Stage. Retirement is the celebration of all your lives hard work. It is all about YOU. It is your time to splurge on yourself.

Secondly, now that you will connected let us focus on the key components of Retirement Panning. Here, you should categorize your spending into ‘Desires’ and ‘Mandatory Tasks’. This will give you a better idea when it comes to channelizing the money. Then, the objective of retirement planning should be both appreciation and preservation of the corpus. Appreciation of corpus means that your investments are churning and giving to stable returns and Preservation means that your capital is protected. Now the Market offers various products which fulfil the above requirements- Post Office Plans, RBI Bonds, Corporate FDs, Bank FDs, Insurance Companies Pension Plans and Mutual Fund options like SWP. Along with the above, significant attention should be given to maintaining adequate Health cover and also an emergency fund (through Liquid Fund)

Thirdly, if you are the one who own a business or has sizeable properties then it is a must to also do your estate planning for the right succession planning. Estate planning is when one takes full authority of disposing of their assets in case of their demise. The same can be achieved through Will Making. Passing on your Legacy is a Skill, if not done right, it can destroy families Thus, you can leave the richest inheritance through Will Making

Thus, seriously consider your retirement planning for a better tomorrow!

Nikita Vete is Executive Assistant at Vete Associates