Don’t Depend On Your Children During Your Retirement Years

By Steffi Dsouza | December 4, 2018

A common practise for most Indian retirees is that they depend on their children for monetary support post their retirement. We’ll give you some tips to plan ahead and avoid that awkward scenario.

Don't Depend On Your Children During Your Retirement Years

Let’s face it. Indians in particular are very family oriented, so much so that most children don’t leave their parents’ home until they get married. Or most parents wait for their children to start working so that they can retire and depend on them. It’s a very common practise here in India to do so without feeling awkward or feeling guilty.

In fact some people even consider this to be a customary duty that their children must abide by. Also, in most of these cases, the parents neglected to think of their own retirement, hence the lack of any savings in the form of Fixed Deposits or other investments to rely on.

Additional Reading: Post-retirement Anchorage: Why And How To Address It!

What the numbers say

The facts speak for themselves. A recent survey conducted by The HSBC Future of Retirement Study says that 45% of Indians think they must enjoy their life now than save for retirement. 56% of Indians live on a day-to-day basis financially, setting the stage for financial problems later.

Although these stats aren’t really shocking, 68% of working people expect their children to support them financially at some point. And 30% of current retirees get financial help from their children.

But, things are slowly changing and people are learning the bitter truth about how not having a retirement plan can backfire. Sure, you have a responsibility towards educating your children and ensuring that they get settled in life, but does that mean you should expect them to take care of you when you retire?

Well, to each his or her own. But if you’re someone who wishes to retire comfortably then you need to focus on that retirement fund. You need to think of saving adequately and multiply your wealth so that you don’t have to depend on your children later on.

Additional Reading: Are Fixed Maturity Plans (FMPs) Right For Your Retirement Portfolio?

Here are few tips that will help you retire comfortably.

  • Think of retirement as your second innings

 The biggest problem with most people is that when it comes to retirement they visualise themselves bedridden or making frequent trips to the hospital. Yes, we understand that you may be worried about your health, but with a good Health Insurance plan you’re sorted.

So, you need to focus on making your retirement a healthy and happy affair. How? Pursue the things that you love doing, or never got to do during your early years due to other responsibilities. Use your retirement years to chill out, travel and pursue that long lost hobby or interest.

  • Envision the kind of retirement you want 

Well, it’s not always necessary to cut back on your lifestyle during your retirement. If you save smartly and invest in the right products then there’s a fair chance that you can keep up your fabulous lifestyle. So, you need to start visualising how your retirement is going to look. That will motivate you to speed up on saving money accordingly.

Additional Reading: 9 Golden Rules Of Retirement Planning

  • Speak to an expert 

It’s entirely possible that financial planning may not be your cup of tea. If that’s the case, speak with an expert or two to get their opinion on how to start planning for your retirement.

Financial experts will put things in perspective for you. They will help you arrive at the amount that you need to set aside on a regular basis in order to get to your substantial savings figure for your retirement. 

  • Be meticulous in planning 

Being meticulous about your retirement planning is crucial. You can’t simply have a plan and not execute it. You need to stick to your plan in order to enjoy the benefits of a stress-free retirement life. Even if it means that you have to cut down on your flamboyant lifestyle now, you should consider doing that.

Additional Reading: Why You Should Start Your Retirement Planning When You Are 30

  • Invest early and be consistent 

The thing about investing is that you need to start early. To reap the benefits of your investments, you need to keep the money invested for longer periods. Mutual Funds, Equity Linked Savings Schemes (ELSS) and debt funds are great avenues to get started.

If you’re looking for a long-term investment plan you should consider investing in the National Pension Scheme (NPS) or the Employee Provident Fund (EPF).

  • Have backup plans

 Saving money alone is not enough. You should also think about investing in real estate. Buying a piece of land or your second home is also a valuable investment as it will only appreciate over time. When the time is right, you can think about selling your property for a larger profit than what you spent on buying it in the first place.

Likewise, other alternatives are investing in gold or saving money in a Fixed Deposit.

Now that you know how to plan for your retirement, you won’t have to depend on your children to ensure that your golden years are as fruitful and comfortable as possible.

Are you looking to invest in a Fixed Deposit? Look no further because we have some amazing interest rates on FDs.

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Category: Budget & Savings Retirement planning
Steffi Dsouza

About Steffi Dsouza

Steffi has previously worked for an Investment Bank and has an educational background in financial management. She changed streams and began her writing career by writing for a number of online portals and websites. In her current role, she handles content for the BankBazaar Blog. She loves travelling to unpopular places, exploring medieval architecture, and spending hours on white sandy beaches.

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