Every professional who has worked diligently throughout their career nurtures silent dreams about an enjoyable retirement devoid of the stress of work – emails, meetings and business development. It is one of those inevitable moments of life; the best time to fulfil our lifelong aspirations– be it travel, charity, social contribution or reading of that list of must-read books collections.
While many people can’t wait to hang their work shoes or suits for good, it is necessary to adequately plan for retirement to avoid pressures of post-retirement. Careful retirement planning allows ease of spending and eliminates the stress of figuring out how to survive. The power of compounding also makes life easier by providing for day to day and medical expenses, emergencies and uncertainties. Consider the satisfaction of giving your grandchild that special gift they have always wanted or the joy of being able to travel the world with but giving a thought to the sustainability of the corpus; and the associated community respect due to the size of your bank account.
On the other hand, retirement planning helps to hedge against inflation. Long term care insurance can protect wealth from the high (and getting higher) costs of health care in the future. Similarly, investment in different alternative vehicles grows wealth with inflation-adjusted returns.
Important Things to Know
- No matter how agile you are now, you cannot actively work forever. There is a need to plan to avoid financial problems in the retirement years.
- Certain expenses especially medical care might increase with age.
- Relying on your kids for your finances could be overwhelming, especially where the economic conditions are unfavorable, and may not give you the independence to enjoy retirement on your own terms.
- You will also be at risk of not being able to accumulate enough assets for your dependents owing to unfortunate and uncertain events like death, disability etc.
- One could be at risk of having a health situation which the health insurance may be insufficient to cover.
- A financial expert can help, especially with the matching task.
Take advantage of our professional expertise towards planning your desired retirement lifestyle