Are Indian Women Financially Prepared for Retirement?
The problem is we think we have time - Buddha.
This quote applies to every aspect of life. And especially to money. Like time, money too is a tricky commodity. If not handled properly, it slips away. As women, we put the needs of others ahead of our own. We forget the fact that women have longer life expectancies and in addition to taking care of our families, securing our financial future is also our duty. We sideline ourselves which puts our future at risk. Post 60s to be precise. We earn, spend and save but without paying attention to our post-retirement needs. It’s that time of life when expenses increase and money flow decreases. So, one should make hay while the sun shines - save and invest for retirement when the time is right. Start early, in fact, as soon as one starts working. Also, keep the following points in mind:
Plan your Own Retirement Account
Don’t postpone retirement planning. Start a retirement account early in life. Put as little or as much as you can afford. If you are in your 20s, start anywhere between 2% - 5% of your monthly income. Increase the percentage gradually as the age progresses. Continuity is the key here. I suggest keeping this amount as low as possible to do away with the temptation of withdrawing it. Investing this amount is a better idea. Don’t cash in the returns. Invest it again at the end of investment’s tenure. Treat it as your sacred retirement money not to be used under any circumstance. This is one sacrifice your older self will thank you for. Remember to increase this amount as your income increases.