PensionBox Blogs
Indian Retirement: 5 Reasons to take your retirement planning seriously
Remy Sharp
Kuldeep Parashar
Sept 15, 2021

Before you start reading about the reasons, we want you to understand that retirement is a universal phenomenon. Everyone around the world including you will age and hence retirement planning is not a choice but a necessity. At PensionBox, we simplify the process of retirement planning with pension & make sure you make better decisions to live a better life.
For centuries, Indians have lived a comfortable and simple life as an elderly, but today’s fast paced world and changing dynamics of the society have posted challenges that were never faced before. And hence, it needs to be addressed with open dialogue and collective efforts.

Reason 1: India’s elderly (age >60) are living alone

For thousands of years, younger generations lived with elder generations and took care of them whenever they needed. In the past four decades, younger generations moved away from joint family structure to nuclear family structure (50.2% of families are now nuclear families).
A significant number of elderly are either forced to live alone or choose to live alone to avoid family conflicts. Some financially stable elderly choose to live their life on their own terms but many are not that fortunate.

Reason 2: Indian women need retirement income

Let’s take an example to understand the reason why women need more care & are more financially dependent on family members in old age.
Let’s assume a middle class Indian family, husband who works at a shop & wife is a homemaker with two children studying in 10th & 12th Class. The earning member of the family is the male and hence all other members are financially dependent on him. Let's fast forward 30 years in the future, both children are earning & have families. Father & mother can't work & have some savings to take care of themselves.
Let’s look at a mother's entire life, she stays financially dependent till the time she lives. First on husband & then on kids to take care of herself. Imagine if both decide not to support her in future. What will happen to her?

The World Economic Forum report says 74% of women are not employed, compared with 25% of men.For rural Indian women, the gap between their lives and digital financial services is vast.
Time is changing, Indian women are working hard in every aspect. The only way to solve this before it’s too late is to help them plan for a financially independent future.

Reason 3: We are aging, yes all of us

“Aging” is the first rule of nature and yes we all are going to age with time.
Now you would think ‘yeah, so what?’
Don’t believe the internet quote that says ‘There is no tomorrow’, still don’t believe us?
Come back tomorrow to read from here!
There is a tomorrow and we all know it. Right thing to do is to plan for tomorrow for the best & live today to the fullest.

Now, Let’s accept the fact that retirement is inevitable!
We feel the earlier you start to plan = more time you have to save!
More time to save = more compounding effect = bigger retirement savings.

Reason 4: The Government’s support is not enough

If your age is above 60 & you are dependent financially then the state government provides an INR 1000 per month pension under non-contributory social benefit scheme (data sample from Uttar pradesh state). Process to get enrolled is time consuming & tedious for elderly. Now the question is, Is INR 1000 enough? How much is enough?

For people under age 60(like us) are responsible to save for their retirement & pension as support provided post retirement from government schemes is not enough for sure!

Reason 5: It’s the right thing to do, Period

That pretty much sums up everything!
If you see a person who needs help, what would you do ? you do the right thing & help that person.
If you see a hungry dog, what would you do? You do the right thing & feed the dog.
Similarly, if you know that you need to have retirement planning done, what would you do?
Yeah exactly you do the right thing! PensionBox was born to do the right thing & say what needs to be said.
If you have questions after reading the blog, we are here for you.
Just drop us a note or request a callback, that’s it!

You can thank us now or think about us later!
But you will remember us, PensionBox!