Most of us work hard and strive to provide the best for our family. Be it your children’s education need, their wedding, buying a dream home, a car among many other financial goals. However, one such vital goal is your own retirement (your golden years of life)—and in our opinion, planning for it should not be postponed to the later years of your life. In fact, the day you enter the earning phase of your economic life cycle is the best time to engage in prudent retirement planning by assigning a portion of your hard-earned money to it.

It would unreasonable to predominantly depend on your children for your retirement needs. Owing to the joint family culture in India, it’s been the norm, a common practice and moral responsibility, for grown-up children to take care of their parents during their old-age.

However, times have changed with the demographic transition and rise in nuclear family set-up / culture. Children are moving out to accomplish their dreams, and for you to be ‘solely’ dependent on their finances may not be 100% feasible. And wouldn’t you love to have your own freedom even after retirement?

Just remember, you need to plan these things in advance. The success of your retirement plan involves years of discipline and consistent savings & investments for the future. This is the key!

Don’t live under the illusion that everything will work out. It might or it might not. So, keep in mind that one day your monthly salary will no longer get credited to your account. Your living expenses might not decline. In the worst case, it could increase as if you fall ill (owing to the rise in healthcare expenses/medical inflation). And it’s best not to overestimate health, because with stress level and lifestyle your medical health is vulnerable. At such times, your savings at banks just might not be enough.

And if you already have a financial plan in place, these points listed below will help you achieve it:

Include a family member  

No man is an island.   

We all have families, and our financial decisions will affect them. The best way to go about building a retirement plan is to first sit down with your spouse or a family member and figure out exactly what you're spending now. Consider household expense inflation, medical expenses inflation, travel expense inflation, and the quality of life you want to maintain during your golden years.   

Will you engage in charity work after you retire from your regular job?   

Will you travel more?   

Will you and your spouse explore talents and hobbies?   

Sit down together with your financial planner and work out your retirement plan.   

Your spouse or children should be made aware of your financial plan; if an unfortunate situation arises, they are well equipped to handle the finances. You can, right now, stop procrastinating, realize the cost of delay, and start planning for your retirement. After all, if you had the chance, wouldn’t you want to retire young and retire rich?  

Write Your Will  

The transfer of assets from one generation to another, also known as estate planning , is a must for every individual irrespective of the size of his or her wealth. Moreover, it is wise to make provisions to leave behind assets, from the very first day you acquire one. You don't need to wait till you own lots of assets to transfer or till you turn 65 to create a Will. You see, life is unpredictable and uncertain. It is always better to prepare a will and keep it, even though you are in the pink of health.   

A Will can be either hand-written or typed out. No stamp paper is necessary. You can write a Will on a simple A4 piece of paper, sign and date it with witnesses and keep it in a secure location. It is often recommended to write your Will in your own handwriting as this can be verified later, if there are any doubts raised by relatives. You can even create your own will online.   

Consolidate all your financial investment documents at one location   

Turning older increases the risk of cognitive decline. In India, more than 4 million people have some form of dementia/Alzheimer’s. A weak or a failing memory can affect day-to-day life, as much as critical illness might leave your family feeling helpless and lost.   

Hence due to such unforeseen circumstances, it is important to organise all your financial documents in one location. Involve a family member or a legal guardian. Ensure the location where your documents are placed is safe, secure, and accessible to your family. Keep a note of the number of accounts, insurance policies, loan documents, etc. You can also create your own investment policy and keep updating it regularly.  

Appoint a Certified Financial Guardian  

Last but not the least, it is advisable to seek guidance from an expert such as a Certified Financial Guardian. She/he will handhold and guide your steps to retirement planning.   

A Certified Financial Guardian is a symbol of trust and respect, owing to commitment to you first. They can help build a long-lasting and trustworthy relationship between those who have the savings and need investment advice and those who can offer it.   

Remember, retirement is not a destination — it’s a journey. A safe and sound journey needs a sound plan set in motion from today.   

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