Retirement
We elevate personal finance from a genericservice into a thoughtful, personalised financial management experience.
We elevate personal finance from a genericservice into a thoughtful, personalised financial management experience.
A financially secure postretirement life is one of the most important goals in an individual’s financial journey, yet it is often overlooked. People tend to prioritise present spending over future needs, underestimate the long term impact of inflation, and fail to fully appreciate the power of compounding. As a result, retirement often arrives with a mismatch between income and expenses, leading to financial stress at a stage when stability matters most. As Peter Drucker rightly said, “The best way to predict the future is to create it.” Thoughtful retirement planning helps do exactly that. At Wealth Vaidya Financial Services, we work closely with clients to understand their current financial position, income, expenses, lifestyle, and postretirement responsibilities and aspirations. We use inhouse tools to estimate retirement corpus requirements by factoring in inflation, longevity, and future cash flows. These tools also help identify suitable ways to achieve the required corpus, fully customised to the client’s present financial condition and future requirements. Based on this, investments are strategized using a structured backward calculation approach that balances long term goals with short term responsibilities and lifestyle needs. The progress of the plan is reviewed periodically, and corrective actions are taken when required, with the objective of enabling a confident, peaceful, and financially independent retirement without compromising present goals and dreams.
Retirement planning refers to the process of setting aside money during the earning years to meet financial needs after retirement. The purpose of retirement planning is to ensure regular income and financial stability when employment income reduces or stops. It involves identifying future expenses and investing systematically over time to create a retirement corpus.
Retirement is a long phase of life. With increasing life expectancy, many individuals may spend 20 years or more in retirement. During this period, income may be limited, while expenses such as household costs, medical expenses, and personal needs continue. Retirement planning helps individuals prepare for these future expenses and reduces dependence on others.
Inflation reduces the purchasing power of money over time. This makes retirement planning essential.
For example:
At the end of 25 years, the same household expenses may increase to approximately ₹1,70,000 per month. This shows that future expenses can be significantly higher than current expenses, highlighting the importance of considering inflation while planning for retirement.
Not planning adequately for retirement may lead to:
These risks increase if retirement planning is delayed or ignored.
Starting retirement planning at an early stage provides the benefit of time. Regular investments over a longer period allow savings to grow gradually. Early planning may reduce the amount required to be invested periodically and helps in managing market fluctuations over time.
Retirement planning does not require large sums at the beginning. Even small, regular investments made consistently can help in building a retirement corpus over time. As income levels change, investment amounts can be reviewed and adjusted periodically.
Some commonly observed issues while planning for retirement include:
Retirement planning is a gradual and long-term process. Early awareness, realistic assumptions, and disciplined investing can help individuals prepare for financial needs during retirement. Investors may consider reviewing their retirement planning periodically to ensure it remains aligned with changing life circumstances and financial goals.