Retirement Is A Big Thing, Don’t Underestimate It [In English]

Retirement 4


From my experience I can share that majority of the people usually ignore the most important subject in their life that is Retirement Planning. Even if very few people though think, but there is a big gap between their thought and the reality. Due to my profession, I have to discuss with many people of different income class, about their financial matters. I have noticed in most of the cases they have casual mentality about their financial planning. Their thought is like – “Its ok,” or “It will be managed later on” and so on. I have thought deeply –“Why the matter is happening like this?” At last, I conclude that –due to work pressure on various professions and heavy pressure on monthly expenses, most of the people have built a ‘managble attitude’ or ‘stage making up’ attitude to manage the urgent situations. Again there is another aspect that is we cannot able to visualize the fact in which we are completely ignorant.


Suppose, a person of 43 yrs, family running expenses is Rs. 22,500 and he have two pension plans of two different insurance companies, for his retirement, in which he pays a premium of Rs. 41,000 annually, and also he deposits Rs. 1.00.000 in PPF Account every year for the same retirement purpose. At the discussion, he becomes surprised when I said him that “Do you know if the average inflation is 9% then the yearly family running expenditure will become nearly Rs,100,000 p.m, in the year of Retirement?” Naturally, he couldn’t accept the fact. Actually, he couldn’t realize the sudden shock of his far-future. If he increases his pre-retirement lifestyle then his post-retirement expenditure will increase more to maintain same lifestyle. Just consider the fact seriously, how though is to convince a person about the subject who himself is not conscious about his future financial planning? Somehow, it depends upon one’s financial education (not academic education). But the ‘Fact is Fact’ which turns into a very hard reality in future.

Now I told him- “ To maintain the same expenditure for lifetime you should accumulate a retirement corpus of Rs. 2 crore, from which you and your wife can spend the same expenditure for life time upto the age of 80 yrs of your spouse”. I explained him the fact by a detailed calculation that, he cannot reach to the retirement corpus by depositing that Insurance and PPF. He has to invest nearly Rs. 28,000 p.m. from today to build that retirement corpus. His Insurance Policy and PPF are not sufficient enough for that purpose but it is practically almost impossible for him both financially and mentally to start investment of Rs 28,000 p.m now.


What will be happen now? He as usual started investing by small amount reluctantly and ignorantly. Now, reaching at the age of his 50 yrs his realisation will then change completely and he will then realise the fact partially. Some how he will then manage the required investment of Rs. 28,000 p.m. but there will be not fruitful result at all. Reality is very very hard. “ Either you pay the price right now or pay the price throughout your life”. Because on that 5 yrs age, the calculation says that, he has to invest nearly Rs. 46,000 p.m. to make such required corpus. Then actually there will be no way without giving it up. Now I request you to think some situations he will face after retirement- Nuclear family concept where no body actually will not be able to support him financially.


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In future, for any retired couple the biggest adverse situation are waiting like, huge medical expenditure, huge inflationary pressure, and unmanageable work pressure of their sons, due to their Job their distant living etc. Just suppose, how much he has to compromise! The future will appear more and more relentless in front of him.

Now, please try to think over in a cool brain, is this coveted by us? If not, why should this happen? Only reason is late understanding. We have to arrange our own financial future by considering such socio economic conditions, don’t ignore it.

Actually, the minimum amount which he was invested regularly in PPF and Insurance, that also in an unplanned way in wrong product. Long term investment is done but return paying capacity is either in below inflation or at par with inflation product.


In fact, most of the people are very casual about their personal finance at early stage of their life. Financial ignorance, lifestyle expenditure, Loan EMI, Child Education, Child marriage such other priorities supress them to do such mistakes. Due to lack of proper knowledge of financial matter no one thinks over the proper use of surplus cash. But remember, proper use of surplus cash is the indication of future well-being-ness. But maximum people, that time choose that product which is either assured or can generate maximum return. Both are wrong approach. To them planning is less important than product.

Due to my profession I have to analyze various person Cash flow statement regularly. I experienced that a person can protect his financial future very easily by meeting with a financial planner and doing with a proper financial plan. In this way he can direct his surplus cash towards his financial goal. The matter is like a kid, how he uses his 24 hours for his study largely depends his academic future. The person who start late, or trapped in wrong product, easily be de focused with product, return, risk and so on, not on planning.

There are so many people who are connected with government or some other different pension plans or system. I strongly recommend the to sit with any financial planner/financial advisor to understand the situation whether the present retirement policy which they follow can fulfill the future requirement. As Retirement is not any particular age, retirement is that very age when your income will be zero but your expenses is going on in its own way. If your retirement corpus can not fulfill your post retirement requirement then only one word is chase you that is “Compromise”. Which is very much painful on that age.

I don’t know whether any body is benefited from this article or not. I need your valuable suggestions in this regards.

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16 thoughts on “Retirement Is A Big Thing, Don’t Underestimate It [In English]”

  1. Really, I can’t express how much I benefitted after reading your valuable article. Retirement Planning is really a big issue. Thanks Mr. Roy.

  2. Asish Bhattacharya

    Since few months I have been reading your article in your blog. It is beyond my expectations that you give me the answers which I send to you. Just Mind blowing. There is no business relationship between you and me although you wrote these valuable articles in a very simple way for us. Thanks to you. I stay in a very distant place, Nagpur. I shall be very lucky if you would be my mentor. It can be possible if god permit.

  3. It is very little complement to say “Awesome”! I read a very timely article. Sometimes I become panicked. I become thoughtful but then I become courageous so that you are with us.

  4. Amal Chatterjee

    Your articles are splendid from different aspects. Firstly, the most simple language. very much practical and easy examples ar used by you. Mostly, you explains very easily the real reason of investment. The investors who are associate with you, are very lucky. Thank you very much.

  5. Asoke Da, I am very much pleased after reading your article. Actually we dont know why planning is more important. I demand from you much more articles like that.

  6. Santanu das Das

    I think that most of the people think about “How”. The How part is totally in expert area. It is the duty of an expert, how he accomplish the financial goal. How I will be benefited by knowing the technicalities.

    Mr. Roy is completely different from this point of view. He always want to aware us in the “Why Part”. Excellent article is the minimum complement for this writing. Thanks Mr Roy. Please enrich us more and more.

  7. Mr Sudip Sarkar

    Excellent! The judical use of surplus cash in a long term, beating inflation etc. These factors are not very easy to deal without the help of an expert, this is my personal opinion. It can be managed with the expertise of a financial advisor. Thans dada.

  8. Thanks Mr Roy. After reading your important article it seems that what a crisis I have to face if I am not acquainted with you. If we meet earlier it was rather good for me. However, better late than never.

  9. Dr Chanchal Debnath

    Very good article. I have learn this type of subject only from you. Even we don’t know how much we are in the right position. Need your guidance always in future…… Keep it up. Thanks.

  10. Just a few month back i met Ray babu and started reading his blogs, now my vision is totally change towards investment .

  11. Arindam Bhattacharya

    We unable to realize the future financial destiny. Thanks Ashok Da to make us realize the fact of our old age financial condition and requirement. I am doing plan regarding financial goal but it is also true that I can’t avoid present expenses for livelihood. So from my point of view, if some one wants to make a good corpus he has to start built up from early life. We can remember the famous phrase “Early to bed and early to rise”. If one starts early he could build early this is the main thing in financial planning that is TIME……


  12. Paramita Mukherjee

    Thanks Ashokda. All your analysis are real eye openers that indicate that it is high time we wake up to the financial realities of life & give us good insights into our future

  13. Thank you Mr.Roy.U’ve enplane very elaborately.If possible kindly write something on my age group-Regards.


    Retirement is an important issue in every citizen’s life. I did not know this,when I joined in my service life . I lost 15 years of my service life to have a plan for retirement. It has now become an imperative need for every body’s life. Start retirement plan very early just by investing rs.1000 p.m. increase it every year by 500/- for 40 years. You will get your work all are requested to ponder over it seriously. Thanks a lot for your creative writing.

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