Retirement Planning: ...And They Lived Happily Ever After ; Life After Retirement Can Be Blissful or Miserable, Depending On How Well You Plan for It. Here's What You Need to Do.

Summary

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Elderly models are suddenly the flavour of the season. Pick up any newspaper or magazine or switch on any TV channel; chances are you'll find grandfatherly and grandmotherly figures lounging by poolsides, paragliding across exotic beaches and generally enjoying lifestyles that seem like straight lifts from the lives of the rich and famous. All the ads are hawking variations of the same product: retirement solutions. Indians, it seems, are planning for retirement like never before. And feeding this demand frenzy is a slew of financial products-from practically every financial institution in the country-"tailored to suit every individual's unique needs". These ads address a very real fear all of us have: of an abrupt descent into hardship after retirement.

And standing between those two old-age extremes is one eight- letter word: planning. As the Americans say, there's no free lunch. After all, for post-retirement life to be comfortable, you'll need money; and with your regular income drying up, you'll have to depend on what-and how well-you have prepared for it. Most people opt for the easy way out: they stash away a part of their income every month in a bank. In an age when practically everything (house, car, furniture, electronic gadgets and even personal accessories) can be- and are-bought through EMIs (equated monthly instalments), tucking away a fixed amount every month works like just another EMI. However, there are other options as well. Here's a detailed look at some of them.

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Retirement Planning: ...And They Lived Happily Ever After ; Life After Retirement Can Be Blissful or Miserable, Depending On How Well You Plan for It. Here's What You Need to Do.

Planning For Retirement

First, you need to know how much money you'll need every month after retirement. For this, sit with your investment planner and work out an estimate; issues such as your age, salary, lifestyle, inflation and expenditure on dependents have to be factored into this equation. The next step is deciding what investments you need to make to generate that amount after you retire.

Most retirement planners advise you to sa...

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