There’re many reasons why retirement planning is so important like any other goals:
Increases in life expectancy
Our generation will live longer than previous ones due to improved medical and healthcare, implying the need to gather enough funds that can sustain longer life. This also implies that the healthcare needs and expenses are likely to haunt us.
Shortfall in employer funded pension or pension funds
The pension that one may receive from these schemes will not be sufficient to maintain the lifestyle. This is the reason many individuals worldwide supplement their state or employer funded retirement plans with self-funding it’s called a pension plans.
Change of social structures
In spite of family support, many retirees don’t prefer depending on the relatives or children for meeting post retirement expenses. Maintaining independent lifestyle is sustainable only when backed with a financial cushion.
Lack of social security system
There is no social security system in our country. So, one has to plan to build the entire corpus to help meet the regular income or any contingency post retirement.
Desire to remain contributor
If you want to contribute to the family by providing and supporting the kids or grand kids at milestones of their remaining life even after retirement is inevitable. Starting an independent venture is also an emerging trend. These can be fulfilled only when one is financially self-reliant.
Rest and relaxation
After fulfilling all your responsibilities, you may want to build a retirement corpus to go on holidays, to pursue a hobby, etc. and live your life easily with relaxation no tension.
While planning for retirement just keep these points in mind. Retirement is not just about age, it depend on the lifestyle you’re living and wants to continue.