Retirement planning is one of the most neglected financial goals in most Indian households, even though it is one of the most important, life-stage goals for most.

Reasons to have a retirement plan :

Working lives are decreasing rapidly. People also retire at an earlier age, voluntarily or involuntarily. Health issues can also force people to quit work much earlier than their official retirement age.

Joint families provided financial relief to pensioners, as children take care of retired parents in such a family structure. Even if children wanted to take care of their parents, the burden would be higher due to increasing costs in a nuclear family setting.

India is largely a non-pensioned society. Most private-sector employees do not have a pension grant. Even for government employees, the age of the defined benefit pension scheme is over. Even employees covered by the Employee Pension Scheme (EPS) and the National Pension Scheme (NPS) find it difficult to maintain financial independence and lifestyle over a long period of retirement.

Inflation is one of the most important factors in retirement planning. Many clients think that their post-retirement costs are lower than their current costs.


Financial independence allows you to ndependently manage your expenses. This is the essence of retirement planning. It is never too late to begin retirement planning but an early start is hugely beneficial.



Ashutosh Gupta

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