Outlook Money
The retirement concept is hugely underserved in the Indian market despite its significance as people’s longevity increases.
Most people don’t take retirement planning seriously when young and focus on short-term needs, ignoring the next 30-40 years post-retirement.
Retirement planning is a complex and serious process that requires a proper assessment of needs and wants.
The longer you give to the accumulation phase, the better the monetisation capability; the key is to beat inflation.
Choosing the right investment vehicle is critical. But what is more important is to consider the post-tax inflation scenario.
In the accumulation phase, one should add equities in the portfolio for long hold, not just fixed-income assets.
Take advantage of compounding by starting the investment journey early and minimise the volatility risk.
Compiled by Himani Verma.