Increasing Longevity and Its Impact on Retirement
The life expectancy rate of India is approximately 68.8 years. With the advancement of medical science and improved standards of living, people of India are slowly matching footsteps with developed countries in terms of increased longevity. Increased longevity has many positive as well as negative aspects. Longer life span gives you more time to enjoy life but it also indicates that your post retirement life is also getting extended. You need to save bit extra in order to maintain a decent lifestyle and fulfill other necessities so that your life after retirement will not face any financial glitch.
Longer retirement has several implications, for example:
- If you are in your 30s or 40s you need to save more to meet the needs of those extra years. Traditionally, it is advised to save 10-15% of income for the retirement but in today’s world that won’t be enough for you. It is high time for you to consult a financial planner in order to know your potential post retirement cost of living through some sound calculations.
- Your investments need longer exposure to risk so that you do not outlive your money saved for retirement. You need to allocate your resources dexterously and set a longer retirement plan. Take help from an experienced financial planner to have a reasonable asset reallocation. Do not forget to have a rebalancing plan for each stage of your life.
- You will need insurances, which will provide you extra cover even after you reach your 70s. Long terms health care insurances will also be needed to give you financial support for your future medical needs.
- In order to save more you may have to work longer. Many people choose to work during post retirement not just for more money but to feel occupied with work. It may be a part-time job or something fueled by passion but does not have to be stressful or something you do not like.
- Get an inflation adjusted retirement plan with the help of a financial advisor. Try to explore alternative investments and insurance products to enhance the effectiveness of your financial portfolio.
Changing Roles of Financial Planners
The role of financial planners for young and retirees is changing. Now, they not just help out with financial solutions but also advise their clients to lead a healthy life. Healthy life is a prerequisite to a happy life. You need to keep yourself engaged in exploring new avenues in life. As people get old they find it hard to deal with loneliness and boredom. Post retirement life can be fun if it is filled with things that you love doing.