5 reasons why Retirement corpus should be built:
- Higher Health care costs : The cost for health care will increase with age. As per research ” Health inflation has always been more than food inflation.” One can compromise on other things but not on health care and medicines.
- Inflation: Inflation will reduce the purchasing power of money. To sustain the same standard of living, we will have have to shell out much higher amount. Monthly expenses of Rs.30,000 today will be Rs.2,00,000 after 30 years.
- Longer life expectancy: Longer Life expectancy means more number of non working years then working years, thus retirement corpus has to be more to take care of the extended years..Life Expectancy has been increased from 65 years to 75 years and on an average, a human works for 30 years in lifetime and rest are his retirement years.
- Flexibility to deal with Changes: A secure nest egg will do wonders in case of unforeseen circumstances like critical illness, uncertain pension systems or Financial crisis.
- Dependency syndrome: To avoid depending on Children for monetary needs after Retirement, it is important to plan for our Retirement. In such cases,one is likely to suffer from dependency Syndrome.The “dependency syndrome” is an attitude and belief that one can not solve its own problems without outside help.
“Don’t depend too much on anyone in this world because even your own shadow leaves you when you are in darkness.” Ibn Tymiyyah
Gurleen Kaur is a Financial Consultant and devotes her time to her company www.hareepatti.com. She has done her Bachelors in Finance and Investment Analysis(BFIA) from College of Business Studies(CBS, Delhi) and MBA from IMT, Ghaziabad. Currently she is also pursuing her studies in order to become a Certified Financial Planner.
She can be contacted at gurleen@hareepatti.greatestdesignever.com