Even those who aren’t Star Trek fans would have heard of the traditional Vulcan greeting: Live long and prosper. It’s a greeting that exists in most human languages as well. While long life is now possible, being prosperous all through is not a given.
India has a woeful record in providing social security, so when it comes to life after retirement, it’s generally each to his own. This could lead to a life of compromise, simply because your retirement savings are not enough to let you maintain the standard of living throughout your sunset years.
Some years ago, Alan Greenspan, then chairman of the US Federal Reserve, said, “One of the most complex economic calculations that most workers will ever undertake is deciding how much to save for retirement.” Over the next few pages, we examine the factors that will help you take this decision. Once you know how much you need to save, look at the various investment options available.
We also consider the implications of the new tax code on the New Pension Scheme. Finally, we bring you the highlights of a roundtable discussion on pensions and retirement planning.
The Excuses We Make |
|---|
| In our 20s |
| • I have just started working. |
| • There is nothing left after the monthly expenses. |
| • I have to save for a house. |
| In our 30s |
| • There is no spare cash after I pay the kids’ school fees. |
| • I have to plan for my child’s higher education. |
| • I am still repaying my home loan. |
| In our 40s |
| • More money needed for child’s higher education. |
| • Expenses are going up. |
| In our 50s |
| • It’s too late to start now. |
| • I’m close to retiring; my pension will suffice. |
| • My children will take care of me. |
