Why Millennials and Gen Z Need to Prioritize Retirement Planning NOW?
When you think about retirement, do you imagine relaxing on sandy beaches or enjoying peaceful evenings with your loved ones? Sounds dreamy, right? But here’s the reality check: without a plan, this dream might just remain… a dream.
Millennials and Gen Z face unique challenges when it comes to retirement planning. Employer pensions are nearly extinct, and the future of government aids is uncertain. Add rising costs, almost stagnant wages, and burdensome loans to the mix, and it’s clear—retirement planning can’t wait.
Why Start Now?
For instance, investing ₹15,000 monthly starting at 25 years of age could grow to ₹5.4 crores by 65 years of age. Wait until 35 to start, and this corpus shrinks to ₹2.4 crores. Early planning not only maximizes growth but also provides peace of mind—no last-minute retirement panic!
Look at it from another angle. If you need Rs 1 Lakh per month to lead a good life today at the age of 25 years, you would need Rs 7.68 Lakhs of money per month 35 years later at 60 years of age when you retire considering inflation to be just 6% per year, and you investing well to get about 12% per year of returns on your investments till you retire. And for this to last another 30 years of life till the age of 90 years, you would need to create a corpus of Rs 22.5 Crores by the time you are 60 years. Are you on the way to this goal?
But the good part here is that a disciplined and regular investing of just Rs 35,000 per month can achieve this if you start NOW.
How to Begin:
- Set a Goal: Use a retirement calculator to estimate how much you’ll need.
- Maximize Free Money: Take full advantage of employer matching.
- Budget Wisely: Focus on what matters and trim unnecessary expenses.
- Educate Yourself: Learn investing basics through books, podcasts, or apps.
- Seek Guidance: A financial advisor can help you stay on track.
Retirement may seem far away, but the earlier you start, the smoother your journey will be. Begin today, and your future self will thank you from that sunny beach, cocktail in hand. Cheers to a secure tomorrow!
(Contributed by Ankit Kumar Singh, Financial Planner, Team Prithvi, Hum Fauji Initiatives)
Building Wealth as a Single Woman
Today, more women than ever are looking at being financially independent. Whether by choice or circumstance, being a single woman opens unique doors for managing your wealth. Here are some simple yet powerful tips to secure your financial future:
Set Your Financial Compass: Dream big and break your goals into bite-sized pieces! Want to buy a car in 2 years? Save a fixed amount monthly to make it happen. Track your progress—short, medium, or long-term—and celebrate each milestone, no matter how small.
Create Your Financial Safety Net: Life loves to throw curveballs, so why not be ready? Think about an unexpected job loss or a medical emergency if you’re in the corporate. Saving 3-6 months of expenses in a high-yield account will help you face these situations without stress. For example, if your monthly expenses are ₹30,000, aim to have ₹90,000 to ₹1,80,000 saved.
Retirement: Start Now, Thank Yourself Later: The earlier you save, the more time your money has to grow. Even small monthly contributions to a retirement fund can add up over time. If you start saving ₹5,000 a month at 25, you could have a solid nest egg by 60. Don’t forget to take advantage of employer matching contributions if available!
Debt – Tame It Before It Tames You: High-interest debt is like quicksand—it pulls you in fast. If you have a credit card bill of ₹20,000 with 18% interest, paying it off sooner rather than later will save you money in the long run. Focus on clearing high-interest debt first and keep your credit usage smart.
With a clear plan and a bit of discipline, you’re unstoppable. Take charge of your wealth today—because your future deserves it!
(Contributed by Abhilash Rana, Relationship Manager, Team Dhruv, Hum Fauji Initiatives)
What did our clients ask us in the last 7 days
Question – As the sole guardian of my specially-abled child, what steps should I take to ensure their financial security, care, and overall well-being after my passing?
Our Reply – As the sole guardian of a specially-abled child, planning for their financial security, care, and overall well-being after your passing is an act of love and utmost responsibility. Here are key steps to ensure your child’s future remains secure:
Invest in a Life Insurance Policy: Choose a life insurance plan designed to provide sufficient funds for your child’s future needs. Direct the policy’s payout to the trust to avoid mismanagement.
Plan for Healthcare Needs: Secure long-term health coverage to handle medical expenses. Research policies that provide extensive coverage tailored to special needs.
Draft a Comprehensive Will: Clearly state your wishes regarding guardianship, financial support, and care. Appoint a trusted guardian who understands your child’s needs and is prepared to take responsibility.
Guardianship planning: Select a legal guardian who will advocate for your child’s personal and financial welfare. Name an alternate guardian as a backup.
Establish a Trust: The aim of the Trust is solely to look after your child when you and your spouse are not around. This is a specialised and important step, and needs to be gone ahead right now. Get the Trust working going now when you are there so that all the processes are well-established before you go. Contact a suitable lawyer who has experience in Trust formation to take it ahead.
Periodic trust reviews: Regularly update the trust to reflect changes in legislation or your child’s evolving needs. Engage caregivers and professionals to ensure effective management.
(Contributed by Team Dhruv, Hum Fauji Initiatives)
Join Hum Fauji’s Telegram channel, “HFI Abilities Aligned“, if you wish to interact with other fauji families with special children.
