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  • Category: Miscellaneous

    Are we saving enough for our retirement?

    These days everything seems more and more expensive. The hike in salary seems good on paper but the actual cost of living, daily expenditure on travel, food and filling up the kitchen stocks seems to be getting increasingly dearer.

    It's sometimes difficult to set apart money for holidays, festivals, term feeds and then savings.We often end up dipping into the reserve money every few months. How do you manage to keep your savings steady? Only when this is in hand, then we can think of how to make our savings grow for that rainy day or retirement.
  • #611163
    A very relevant topic raised by the author. I have written many articles and small posts in various platforms including ISC on this issue. The retirement savings plan would be different for the working people who are eligible for pension and for those who don't have the facility of pension. This issue is becoming more and more important in the present regime of falling interest. Moreover, there are various other aspects which are to be considered while planning for retirement (e.g., fund for medical purpose).

    I expect a detailed and interesting discussion in this thread which would help all of us. I will give links of some my relevant articles later.

    Beware! I question everything and everybody.

  • #611174
    For the government employees there is a pension guarantee and other benefits which comes in lump sum and that can be saved for future. But for a private company employee the salaries are not that big and the daily increase in prices wont allow us to save for future. In fact the plight of every private employee family is so precarious that even in the event of sudden hospitalization they are not able to keep aside a sum. In this situation how can we think of allocating funds after retirement. That is why we heavily depend on the children to lift our life after retirement. Some are beneficial and many end up at the old age homes.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #611195
    Yes, even I am looking forward towards more information on this, so timely decision can be taken and spend wisely. Watching out this space for more information.

  • #611198
    I am a private employee, glad to see that other members also have the interested. Mohan Sir, Depending on children heavily is something I want to avoid ( it's delicate on both sides and makes relationships even more fragile) but many of us may not have a choice.

  • #611213
    It is really a difficult equation for an employee of a private company to meet his expenditure after retirement. During the service, our expenditure and income will be on the same levels. So savings will not be very high. But one good thing is PF amount will be getting accumulated and we will get it at the time of retirement. That money is to be saved properly and see that we will get some good returns every month on that. we should not eat into the original amount. We should spend the interest we are getting monthly. We have to take definitely some health insurance to meet our urgent medical expenses. It should not be thought as waste. We should see that waste expenditures are controlled in all the areas. Another way of saving money while in service putting some money every month if PPF. Minimum 10 to 20% of your salary if you can save , that amount will be useful for your retired life,
    always confident

  • #611223
    Planning for life after retirement is something to done thoughtfully. From my experience I did most of the things almost prior to retirement. At the age of 33 when I was in service I constructed my own house. By that time both my children were born. Almost after that period my wife became employed in Govt Service ( she is an Engineer). By the time my children were grown I took an extension to my house by constructing first floor with two more rooms. Earlier the house was having two bed rooms and other facilities in the ground floor. I had taken a loan and the same was paid up by this time. Hence I could go for another loan for the additional construction.
    Prior to the retirement of both of us our children ( both are boys) finished their education and got employed. Just after our retirement my elder son's marriage took place
    We had our retirement benefits to meet the expenditure. After four years second son also got married. By that time he too was well settled.
    Now both of us are having our pension and note that this amount is much more than what we were getting beforeretirement. In my case I retired before implementing the UGC scale. But when it was implemented later pension got increased. Now my younger son has already built his own house, while the elder one is sharing with us.
    I have these details to show how planning could be done to lead a life without hardship after retirement .


  • #611249
    Interesting topic and I would love to hear from fellow members.

    Both me and my husband are private employees, so we need to save. We do set apart a small amount of money from our salary almost every month and we get it deposited in the bank. Once it becomes a lumpsum amount, we convert it into FD. Secondly we have enrolled for a LIC policy, on maturity that is after 16 yrs, we will get almost double the amount we paid. As it is a lumpsum amount we might be able to meet the educational needs of our children with that amount.

    We recently enrolled for a pension scheme with SBI life. I do not how far it is good but aleast we will get some money as pension. We have made enough savings and constructed our house 1 year back and my husband was only 33yrs then. I feel it is an young age and I consider it as an achievement. But we are left with no savings and we will have to start from scratch again.

    One thing I feel good about taking policies is, even if we have other commitments we will some how arrange the money on due date and pay it off. Finally we will get a lumpsum amount. It is difficult to keep aside a fixed amount from our salary every month, as our needs are more. But when we have a policy, it will get paid off as it is a commitment.

    "Do not give up, things might not favour you always"

  • #611256
    excellent replies so far, more practical based on each one's experience. Thanks to all.

  • #611325

    I have read the responses and I feel pained. These responses prove that majority of Indian people are highly educated and they save a lot, but they don't know the basic tenets of investment (no offence meant to anybody).

    Retirement planning must be started at an early age (preferably immediately after employment) and investment must be goal-based. Generally speaking, a person under thrity must take the benefit of NPS for a regular pension during his/her twilight years. This is tax-friendly also. They must put a monthly amount in PPF and in a Balanced Mutual Fund. Furthermore, people who don't have any medical protection, should take an accident insurance plan and a mediclaim policy.

    People above 50, must save money in PPF and in a debt-oriented hybrid mutual fund for their twilight years.

    Ms. Chitra: Please remember that insurance is not a vehicle for investment. It only provides the nominee (not the policy-holder) a protective umbrella in case of any untoward incident happens to the policy-holder. Please change your investment planning accordingly.

    All of us must remember that retirement planning should be made for long term, preferably for twnty years or more.

    I have been confused because Ms. Juana has initiated another thread on the same subject.

    Beware! I question everything and everybody.

  • #611445
    Good suggestion and practical experiences narrated. Mr.Partha has given some valuable information for people to start thinking and taking this further, to the sooner we start, the better it is.

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