Since time immemorial, the term retirement has always meant the end of a person’s career especially after having success in their respective fields. For most people it means the end of their formal employment where most people retire in old age. Some careers may end early for reasons such as accidents leading to the inability to perform anymore or the end of a sports career.
Regardless of the reason for retirement, at the end of it all, it means the end of the career where a lot of hard work and effort had previously been focused. Unfortunately, most Indians are not prepared for retirement life according to a global report called “The Future of Retirement” that was compiled by HSBC. The report claims that 35% of the working class is not sure that it will be able to support comfortable lifestyles after they retire. About 8% of the working class are worried that they might go through financial strains once they retire.
According to those numbers, approximately 14% of the working class are convinced that full retirement is not an option for them. There are various reasons why there is a sense of unpreparedness when it comes to retirement.
Debts and Mortgages
Mortgages and debts are some of the major deterrents towards financial security. Most people end up working to pay off these debts and as a result, they are unable to save for their retirement.
Saving up when it’s too late
Most people find themselves in an awkward situation because they were unable to save early in advance. In India, 47% of the working class are in this category while a global scale suggests 36%. About 37% of those who are retired claim they had not planned for their retirement life.
Lack of retirement awareness
Most people do not think they will ever retire. Some of them are not even aware of their retirement until it knocks at their door. By this time it is usually too late because they have not saved any funds for their retirement life.