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.