Retirement Planning: Convergence of Balanced Portfolio of Fixed Income Assets Stocks Beneficial for Financial Security in Retirement

Over the years Indian society has been seen through its customs and traditions which have given the society a distinct identity. Culturally Indian families are close knit and follow these practices from generation to generation. Here the parents take care of the children until they settle down and then the children look after their parents in their old age. Gaurav Parija, head of sales and marketing, Bandhan AMC, said that due to the same decades-old tradition, people's thought process does not include the concept of retirement planning.

However, with the change of time, there has also been a change in the lifestyle of Indians. According to one tradition, it is the moral duty of children to look after their parents. This tradition is rooted in the joint family, where multiple generations live together where the good upbringing of the children is ensured and the elders are also well looked after. But the once traditional practice of the joint family which provided a safety net to the elderly or heads of the household is now being forgotten and the nuclear family practice is becoming more prevalent. Along with this change, rising cost of living and increased life expectancy, financial considerations have increased in importance, emphasizing the need for retirement planning in today's times.

This situation has become more critical in the year 2024, as 2 out of every 5 Indians have not yet started planning for retirement while 61% of Indians fear that their savings will be exhausted in the next 10 years. As with other investments, young people don't pay as much attention to retirement planning as they get busy with their other financial goals like buying a car or a house. Another mindset among young people is that their current income is not enough to meet their immediate financial goals as well as saving for retirement and hence retirement planning is neglected or overlooked.

A small amount can turn into a big amount in the long run Young people need to understand that when it comes to retirement planning, even small sums can add up to a significantly larger amount in the long run. While the complexity of retirement planning today can make this task even more difficult, there are several resources available in the market today to help you make the right decision. Moreover, there are some reliable financial advisors in the market as well as reputable financial institutions that can provide you with retirement planning right now to secure your future. However, there is a prevailing mindset regarding retirement planning that children will support them in retirement.