With growing inflation, it is important to have proper retirement planning in place, so that one can afford proper lifestyle even after the retirement. There are various reasons how lack of retirement planning may even hamper mental health.
Retirement life, a period often referred to as second innings, is a time when your regular income stops but your expenses don’t. Many people often make the vital mistake of assuming that their children or other relatives will take care of their financial needs after their retirement. However, such people often end up learning the hard way and become heavily dependent on others even for their basic needs.
Here are a few important reasons why you should start planning for your retirement at the earliest:
Emergence Of Nuclear Families
With a rising trend of nuclear families, the age-old support system seen earlier in joint families where elders are looked after by their children is on the decline. As a result, it is very common these days for senior citizens to live on their own and take care of themselves and their expenses. Over the next few decades, this trend is likely to increase further.
Rising Inflation
Due to rising inflation, monthly household expenses will also multiply significantly in the coming decades and it will put a heavy burden on one’s pockets.
Financial Independence
Expenses like those for household, travel, lifestyle and medical treatments require adequate finances not just after retirement but as long as one lives. Due to better medical facilities and living conditions, the lifespan of people is increasing with every passing year. Hence, it is important to have regular income even after retirement to remain financially independent and take care of all the above-mentioned expenses.
Increasing Health Problems
With increasing age, the number of health problems also tend to rise. Lack of exercise and proper sleep, poor diet and stressful lifestyle during one’s earning years are some of the major reasons why people fall sick more often in their old age. On one hand, medical technology is getting better day by day, but on the other hand, the cost of treatments is also going up. To ensure proper medical treatment in case of any medical issues, it is necessary to have adequate and regular income post-retirement.
Self-Respect And Dignity
People who depend on others for their expenses post-retirement, often end up compromising even on their basic needs. In contrast, those with regular income can continue to enjoy life on their terms with self-respect and dignity.
Retirement is a time to enjoy life and follow your passions and hobbies without worrying about finances. Retirement pension plans and other products in insurance or other categories not only ensure regular and guaranteed income but also a life of financial independence and peace of mind.
The author is the CEO & Principal Officer at Bonanza Insurance Broker Pvt Ltd.
DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.