The Importance of Being a Rich Retiree

Written on Sunday, October 29, 2017
By Mitali Sharma

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I'm just 30. Do I need to Worry About Retirement Now ? Would you plan a family road trip without a spare tyre or would you invite guests without keeping food for them or would you fix a marriage without arranging a budget for it?

 

There numerous small and big things in life that require some sort preparation in advance. Imagine what will happen if you don't do these preparations? Things will go out of control. 

 

Likewise, retirement also needs preparation in advance. We all know it but still many tend to procrastinate the retirement planning thinking that there is still time for it. Let's make a reality check to understand whether one can procrastinate their retirement planning.

 

Reality Check 

 

Your basic survival needs are Food, Transportation, Health Care, Clothing, and Shelter. If we take only food into consideration, then let's calculate how much it costs us. 

 

The Food Cost Story: 

 

We all know about the rising cost of essential food items We have been creeping about it since long. Even the basic staple food items like rice, wheat, pulse, onion, tomato have got extremely pricey.
 
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So, a family of two would spend around Rs. 22 Lakhs on their food expenses over a period of 20 years. This is only if we don't take the inflation into consideration. 
 
Now, if you consider the inflation, then the food expenses for a daily meal of a family of two for 20 years would be around Rs. 63 Lakhs.
 
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Who is Paying for Your Food Expenses?
 
So to feed your family of two people you need at least Rs. 63 Lakhs. From where are you managing these expenses?
 
Your Salary? 
 
But after retirement, you won't have a regular salary, then  how will you manage the expenses for these needs? 
 
Your Savings? 
 
Crux of the Matter
 
Rs. 63 lakhs is required just to meet the expenses of one basic survival need, ie Food. Now, you can imagine how much will be the cost of living, if you consider other expenses of survival needs like Health Care, Utilities, Transportation, Entertainment, Travel, House Maintenance, etc. 
 
Will your savings be able to suffice the comprehensive cost of all your survival needs for 20 years? 
 
The answer is “Yes It Can But How?” Simple, Retire Rich with a huge corpus. 
 
Here is the formula of retiring rich:
 
1. Don't procrastinate your retirement planning. Start saving for it as early as possible. You must start as soon as you start earning. 
 
2. Saving money in bank accounts don't provide inflation-beating returns. So, don't just save but invest your money to beat the inflation. 
 
3. Keep retirement as your financial goal and make regular investments towards it.  
 
Investment Options For Retirement
 
While investing for your retirement, you can choose the route of Mutual Funds and can opt for Retirements plans offered by various insurance companies. Govt. initiations like PPF and NPS are also great tools to start your investing towards the goal of retirement. Your investment portfolio is just complete if it includes all the tools mentioned above. 

Get More Info Now!

 

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