A lot of people look forward to retirement as their free pass to do anything and everything they hoped and aspired to do but couldn't because of their jobs. Retirement is the reward for years of hard work and dedication. As we get close to retirement, we start dreaming of doing all the things that our jobs are holding back from us. But, along with building castles in the air, one must also think of plans on how to sustain life after retirement. 

Having a comprehensive retirement plan is very important for today's date. Dual retirement is one such popular retirement plan a lot of people are resorting to. **What is dual retirement? How does it work? What are the benefits of dual retirement?** All these questions will be answered in this article.

## What is dual retirement?

Dual Retirement is regarded as a safety net after your 60s. As the word **“dual”** suggests, dual retirement involves two people who are simultaneously planning for retirement. This doesn't mean that they have to retire at the same time. Even if the two individuals retire separately, and are availing benefits of two separate insurance plans, they can enjoy the perks of dual retirement. 

For instance, X and Y are husband and wife and both of them have the same aspirations after retirement. So, they can opt for a dual retirement plan to pursue their dreams after retirement. X and Y are not going to retire at the same time. Still, they have the liberty to opt for dual retirement

## How does life expectancy affect the need for dual retirement?

Earlier, retirement age was decided taking life expectancy as the basis. So, 60 was set as the retirement age. Life expectancy for an Indian at that time was merely 67-70 years. So, the funds accumulated at retirement were enough to sustain a life of 7-10 years. One could survive and live off the saved capital. However, over the years, because of advancements in technology and medicine, life expectancy has increased and reached up to 80 years. Additionally, life expectancy keeps increasing about every 10 years up to 5 years due to advancements in science and medical technologies. 

**Let's try to understand this using some numbers**
 
A retired in 2000, at a time when the age of retirement was 60 years and the average lifespan was 70 years. B resigned in 2019 when the age of retirement was also set at 60, but the average lifespan has averaged 80 years. This is 10 years longer than it used to be 20 years ago. B now has 20 years of a non-earning life ahead of him. When C retires in 2040, the age of retirement will probably remain at 60 years, although the average life span will be about 90 years. D would then have 25-30 years of non-earning opportunities ahead of him. 

So, if adequate and proper retirement planning is not done, there are high chances that you may run out of capital to sustain life after retirement. Hence you may want to consider dual retirement. 

## How Does Dual Retirement Work for You?

Dual retirement has become a great option for individuals seeking a peaceful and contented life as merely planning retirement at 60 won't provide everything you aspired for over the years. Returns from investments in programs like the [National Pension System or NPS](https://pensionbox.in/blog/What-is-NPS), [EPF](https://pensionbox.in/product/pf), [PPF](https://pensionbox.in/product/pf), and [ELSS](https://pensionbox.in/blog/NPS-ELSS-PPF) are beneficial, but won't last for 20-25 years after retirement. Hence, considering a second retirement at 70-75 has become very important. Otherwise, one would have to depend on their children entirely, and how that turns out in today's life everyone is aware of!

Therefore, planning things out with your wife/husband is essential, and considering dual income is crucial. 

**Let's see a real-life example to understand more about why apart from investments, dual retirement is necessary**

- 1. Tarun, aged 38, selects an investment plan and continues investing Rs 8,000 per month until he reaches the age of 50. So, as he reaches the age of 70, he will receive INR 39,87,272 with an 8% return on investment. Along with that, if he suddenly dies during the insurance period, his family would just receive Rs.8,39,179 as a death cover.

- 2. Sagarika, who is Tarun,'s wife and aged 40, opts for a participant saving plus protection plan and thereby starts to contribute Rs 10,000 per month for 18 years. She will receive Rs. 55, 92,847 when she attains the age of 75. Her nominations would receive approximately Rs.14, 26,200 as death cover if she dies prematurely. 

Dual retirement acts as a safety net after your 60s. Considering it in your retirement plan can help you gain financial security and a chance to lead a happy and peaceful life after retirement. Keep reading with [PensionBox](https://pensionbox.in) to know more about retirement-related benefits.

A lot of people look forward to retirement as their free pass to do anything and everything they hoped and aspired to do but couldn't because of their jobs. Retirement is the reward for years of hard work and dedication. As we get close to retirement, we start dreaming of doing all the things that our jobs are holding back from us. But, along with building castles in the air, one must also think of plans on how to sustain life after retirement. 

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