Where is Your Post Retirement Plan? Bitter but Truth

Do you have Post Retirement Plan? Life is not going to end on the day you retire & if we talk about finance, the issue is even bigger. Recently RBI published a shocking report where they mentioned only 10% of Indians are doing their Retirement Planning (actively think about old age financial security and definitely have a course of action) & 13% have started actively saving for old age. There’s a difference between saving & retirement planning but I give the benefit of the doubt – what about the rest 77%? There’s even a bigger shock, how people are planning to fund their retirement – that you can check in the last graph.

A similar study was done by HSBC in India – some of the findings of the survey –

  • 61% of Indians above the age of 45 want to retire in the next five years BUT
  • 71% of the people who think they cannot retire even though they want to believe lack of financial readiness is preventing them from retiring.

Where is Your Post Retirement Plan? Bitter but Truth

Read – Best Investment After Retirement

Do Indians have Post Retirement Plan?

A shocking report from RBI published recently has the following observations –

  • The share of mortgages in total liabilities increases as people approach retirement age. This means debt exposure increases as one grows older which is not a good thing for one’s finances.
  • Households convert gold holdings to real estate as they grow richer. They do not increase allocation towards other financial assets or retirement portfolios.
  • There are different products available in India – pension accounts like NPS, investment-linked life insurance products, LIC Pension Plan, etc. but their use is negligible in many states. They are used up to a small extent in a few states. (We don’t suggest mixing insurance & investment.
  • In the survey, 44% of people have not thought about retirement planning as they feel they cannot retire from work, and 33% of people know they will retire one day but have not thought or planned anything about it! 77% – that is a big number of people who have not planned their finances and are definitely not giving the right sign.
  • 40% of people depend on their spouse or on themselves to make financial decisions. This is fine if the spouse or the person is an expert otherwise it can be a risky proposition.
  • When people were asked to name the sources of funds for retirement, more than 50% said they will be dependent on their children for post-retirement plans and about 25% of them said they did not know what they will do when they retire. This shows a lack of financial maturity.

77% people have no Post Retirement Plan – RBI

Do you have Post Retirement Plan
Do you have Post Retirement Plan

Read What is Insurance?

post retirement financial planning
post-retirement Plan In India

SHOCK – 50% Indians depending on their Kids for Retirement

Check –Are you ready for your Retirement?

How much should I plan for retirement in India?

Where would you stand if you were part of these retirement surveys? Do you know how much money you need during your retirement? Have you planned for retirement? Do you have a diversified investment portfolio?

Let us find out how much money you would need post-retirement

Current Monthly Expenditure Expenses (Rs.) 20000
Current Yearly Expenditure (Rs) 240000
Number of years left for retirement (years) 20
Average Inflation (%) 6
Yearly Expenditure when you retire (Rs.)

(assuming 80% of current yearly expenditure will be incurred post-retirement)

Yearly Expenditure 10 years after you retire (Rs.) 1102750


As you can see, the expenditure after retirement can be huge. Retirement planning has to be considered seriously. Many people do not want to think about it as they think it is too far away in the future or is scared of planning for it. Some assume their children will take care of their finances as shown in the survey. It is never a good idea to be entirely dependent on others.

Must Read – How much will it take to retire?

Planning for Retirement 

You have to plan for your retirement as early as possible –

  • Start saving and investing from now if you have not started. Each time your income increases, the percentage of savings and investments should also increase. If you are not confident of your investment skills, take the help of professional financial planners.
  • Plan to pay off debts much before you retire. Avoid taking debts like personal loans or credit card debt when you are closer to retirement.
  • Invest in different assets – real estate, gold, equity, and debt-based financial instruments. This will ensure optimum returns and also protect you from risks.
  • Review your investment portfolio regularly so that it remains stable and strong. As you reach different milestones in life or become older, the portfolio will have to be tweaked to suit your current phase of life.
  • It is very noble to think that you will take care of the education expenses of your children or your relatives’ children. But education is expensive. Rather than blindly committing to such a lofty goal, keep a target amount aside for such things and make sure you have money to take care of your retirement and other needs. Retirement Planning Vs Child Future Planning
  • Keep aside an emergency fund for unexpected circumstances. Buy medical insurance so that if you fall ill or have to be hospitalized, your finances do not go haywire.

You have to be prepared for your financial future so that you can maintain your lifestyle and have funds to take care of emergencies. The retirement years are called the golden years. If you are prepared financially, you can enjoy this phase by spending time on things that you like and have a stress-free life.

It is important to start planning for it early and methodically. If you have planned for your retirement, you are on the right track and if not, start planning now!. Please share your Post Retirement Plan in the comment section.


  1. An eye opening article Hemant ji. Well said
    If you have planned for your retirement, you are on the right track and if not, start planning now!

  2. Thanks Hemant Ji for this inevitable quote which has deep meaning and truthfulness to live a heavenly life before going to heaven. “The retirement years are called the golden years. If you are prepared financially, you can enjoy this phase by spending time on things that you like and have a stress free life”

    • Thanks Partho – it’s important that we should try to bring balance between pre & post retirement life 🙂

        • Hi Anil Ji,
          Good to see you back?
          Balance is really important.. specially if pre retirement lifestyle is extravagant.

  3. Hemantji,
    I’m sorry.I spent my entire earnings in children education & marriages.I also invested in lic for risk coverage to my wife after my death,( which has become paid up as I have undergone a serious accident & became unsalaried) I am 55 yrs old & need pension for lifetime of me & my spouse.I can get nine lacs if I surrender lic policies.Kindly suggest me how can I get immediate pension,with my invested & surrendered lic amount.

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