Most people are urging you to be FINANCIALLY INDEPENDENT so that you can retire early– FIRE as it is called. In fact, proponents of this aim to reach this far earlier, perhaps even in their 30s. This involves saving tons of money and making a lot of financial sacrifices. Even retiring in our 60s does not seem to be so easy, so should one take such stress?
There are many people I know who would continue to work till they are in their 70s, if their employers keep them. I have a cousin who is working – he is just past his 75th birthday. Most Indian men do not have a hobby and actually prefer being in office instead of being at home doing nothing. Do Retirement Calculators and Retirement Advisors scare us with big numbers like Rs 20 crore or Rs 10 crore required for retirement?
Also, does this generation, now in their 40s, think it will be healthier than their parents? And the retirement age of 60 looks unnecessary? Can most of us go beyond say 65 years of age?
To me all the 3 questions have one answer – YES.
What if we pick a less taxing job at age 50 so that we can go on till 70, and enjoy our journey?
The amount of money needed to retire is much less if the retirement age is changed to 70 years – this reduces stress for sure.
There is enough proof that working till 70 will help in delaying the onset of dementia, and other brain related illnesses.
Even though India has a young population, the experience, and contacts of the older people should be useful to the country also.
Unless there is a strong pull-retirement i.e. your hobbies or interests are pulling you, there is no great reason why people should retire early.
If the challenges of work – physical, social, intellectual – are making the persons better equipped to handle their retirement, this is again good for the country, is it not?
One huge advantage is of course the continuing of Group Medical Insurance till the age of 70 – the savings here for the retiree is not to be scoffed at. It is huge indeed – and for the corporate there will only be a slight increase in the total premium, because the average would be much lower.
Do we really want a life of endless leisure? Can we really handle that? Many of us still want to do some teaching, training, mentoring, and coaching –will we give up all this? Maybe some of us want the social advantages of being with younger people –money could just be an added bonus.
What about those who want to have a nice balance of something to do and something to have fun? What if our body does not allow us to work? Well this article is only for those who have good health and want to continue earning – those who can physically, mentally, socially, and financially have a choice!
PV Subramanyam writes at www.subramoney.com and has authored the best seller ‘Retire Rich - Invest Rs 40 a day’