Moneyhive Investments Services - Retirement Planning

Your retirement should not be a STATE but a “STATEMENT”

“Silver in hair and gold in pocket”, this is how one should aspire to retire. It is not how old you are, but how you are old, which matters.


What is retirement planning?

Retirement planning is setting aside of funds during the earning span of an individual and channelling the funds in a secure and remunerative manner with a view of achieving the present and future financial objectives.

Retirement can be a time of great joy – a time to travel, relax, take up new hobbies, and do the things you never got to do in your working years. But it can also be a time of worry if not planned systematically.


Need and importance of retirement planning

There are many reasons why planning for retirement is important like any other goals:

1. Increase in life expectancydue to improved medical and healthcare, implying the need to gather enough funds that can sustain longer life. This also implies that the healthcare needs and expenses are likely to haunt us.

2. Shortfall in Employer Funded Pension/Pension Funds : The employer or government funded pension schemes are less likely to sustain the income needs post retirement.

3. Change of social structures: In spite of family support, many retirees don’t prefer depending on the relatives or children for meeting post retirement expenses. Maintaining independent lifestyle is sustainable only when backed with a financial cushion.

4. Lack of social security system: There is no social security system in our country. Hence one has to plan to build the entire corpus to help meet the regular income or any contingency post retirement.

5. Rest and relaxation: After fulfilling all your responsibilities, you may want to build a retirement corpus to go on holidays, to pursue a hobby etc.

All of us would like to retire comfortably.The complexity and time required in building a successful retirement plan looks very complex. However, it can be done with a smooth process - all it takes is a little homework, an attainable savings, investment plan, and a long-term commitment.