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Only about 12% of the Indian workforce is covered by some form of retirement benefit scheme.

With more than 88% of the working population uncovered, the existing system is unlikely to act as a social security umbrella for retirement.

Home Retirement Planning What is Retirement Planning

What is Retirement Planning

India has a population of 80 million elderly people and a significant majority of this population is not covered by any formal retirement income scheme. With changing lifestyles, India is transitioning from traditional joint-family support systems to a new world reality where the balance between family support and self-support in retirement is tilting strongly towards the latter.

Some of the contributing factors to this change are:

  • Evolution of nuclear family systems.
  • Increase in life expectancy.
  • Rising expectations due to increase in per capita income and education.

With the looming demographic challenges, India faces a swelling non-working elderly population. Further, as life expectancy increases, the number of years in retirement is also expected to increase, requiring you to fund a longer retired life. Hence, the risk of living longer is equally striking as the risk of dying early.  Therefore a planned approach to retirement planning is critical.

In the Indian context, retirement can only be achieved after a person has fulfilled his responsibilities towards his family (children’s education, marriage). Hence, retirement planning is not only about planning for a secured and financially independent retirement but also entails planning for these key life-stage goals. It also necessitates providing protection against future uncertainties and events so that the achievement of these goals is not compromised.

In fact, retirement planning is a one-stop medium to achieve all your financial dreams!

Saving and Investing for Retirement: It is never early

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