With advancements in healthcare and lifestyle improvements, Indians can expect to live longer, which means they may need a substantial amount of money to sustain their lifestyle in retirement.
Comprehensive Social Security:
While there are some government-backed schemes, they may not be sufficient to meet all the financial needs during retirement.
Rising Inflation:
The cost of living is likely to increase, and without adequate retirement planning, individuals may find it challenging to maintain their standard of living during retirement.
Changing Family Dynamics:
Modern trends indicate a shift towards nuclear families. In such scenarios, older individuals may need financial independence to meet their expenses without depending entirely on their children.
Healthcare Expenses:
As individuals age, healthcare expenses tend to increase. Medical treatments and long-term care can be expensive. Having a financial cushion for healthcare costs becomes essential.
Maintaining Lifestyle:
People often want to maintain or improve their lifestyle during retirement. This includes leisure activities, travel, and other personal interests. Adequate savings help in fulfilling these aspirations.
Economic Volatility:
Economic conditions can change, impacting job security and income. Relying solely on employment income without saving for retirement may expose individuals to financial vulnerabilities.
Tax Benefits:
Many retirement savings instruments in India offer tax benefits. Investing in such instruments not only helps in building a retirement corpus but also provides tax advantages, reducing the overall tax liability.
Financial Independence:
Retirement planning provides financial independence, allowing individuals to enjoy their golden years without being dependent on others. It offers a sense of security and peace of mind.
Early Planning Advantage:
By starting to save for retirement early, individuals can benefit from the compounding effect, allowing their investments to grow over time.