Why Retirement Planning Canโt Wait Anymore
There was a time when our parents could rely on fixed deposits (FDs) giving 10โ11% interest, and that was enough to retire comfortably. Today, those same FDs offer only 6โ7%, while inflation has surged to 7โ8% or more. The money we save now loses value faster than ever.
As a financial advisor, I often get asked: “Whatโs the right age to start planning for retirement in India?” My honest answer is: The earlier, the better.
So the real question is: When should you start retirement planning?
ย my answer is simple:
The right time to start was yesterday. The next best time is today.
How Inflation Is Silently Eating Your Savings
Letโs take a simple example:
Thatโs inflation. When prices rise every year, the same โน100 buys fewer goods. If inflation is at 7โ8% annually, and your FD returns are 6โ7%, your real return is negative.
This means saving alone is not enough anymore.
You need a strategy that can beat inflation and give you financial freedom in retirement.
What Happens When You Delay Retirement Planning
Letโs compare two individuals:
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- Person A starts at age 25, investing โน5,000/month in a SIP
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- Person B starts at age 35, same amount
Both invest until age 60 with an average 12% annual return
Results:
A 10-year delay results in a โน2.3 Crore lossโbecause of lost compounding.
Your Best Tools for Retirement Planning in India :
As a financial advisor, hereโs what I recommend:
1 . Systematic Investment Plans (SIPs)
SIPs in mutual funds are ideal for long-term goals like retirement:
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- Start with as little as โน500/month
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- Historically deliver 8โ12% returns annually
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- Rupee-cost averaging reduces market risk
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- Power of compounding works best when you start early
Tip: Increase your SIP by 10% every year as your income grows.
2 . LIC Pension Plans โ For Assured Lifetime Income
If you prefer guaranteed income after retirement, LICโs pension plans are excellent.
Two Three choices:
LIC Jeevan Akshay VII
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- Immediate annuity plan
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- Pay a lump sum once, start receiving monthly/quarterly pension
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- Lifetime income guaranteed
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- Choose single life or joint life
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- Ideal if you’re close to retirement and want regular income
LIC New Jeevan Shanti
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- Deferred annuity plan
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- Pay once, pension starts after 5โ20 years (your choice)
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- Income guaranteed for life
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- Ideal for those in their 40sโ50s who want to plan early
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- Joint life option available for spouse security
LIC Pension Plan Benefits
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- 100% guaranteed pension for life
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- No market risk
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- Suitable for conservative investors
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- Backed by LIC & Government of India
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- Flexible payout options (monthly, quarterly, yearly)
What I Recommend Based on Your Age Group
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- Start SIPs as early as possible
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- LIC pension plan or saving plan
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- Don’t wait to earn more โ start small, stay regular
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- Combine SIPs with LIC New Jeevan Shanti for deferred pension
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- Increase your SIP amount to accelerate wealth
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- Use lump sum in LIC Jeevan Akshay VII for lifetime monthly income
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- Prioritize health insurance & stable income
Conclusion: Start Retirement Planning Before Itโs Too Late
Retirement is not about age โ itโs about preparation. If you want to live peacefully, without depending on others, you need a plan that protects you from inflation and rising expenses.
The combination of :
SIP for growth, and LIC Pension Plans for safety
offers a balanced strategy for every age.
You donโt have to be rich to retire well โ you just have to start early.
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Letโs build a secure tomorrowโstarting today!