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Flourishing in your second innings

If life was a One Day game, it would certainly count as odd. Imagine a match where the side batting first gets exactly 50 overs while the side batting second could get anywhere from 1 to 50 overs! Fortunately for us cricket fans, this doesn’t happen (unless one or both teams don’t last their quota or don’t need 50 overs) very often. Life however, isn’t as certain. As much as one worries about dying earlier than expected, you have a much higher chance of living longer than you thought. Longevity of life may not necessarily be a good thing.

With a long life comes longer retirement years. Are you geared up to finance them?

I just played around with a certain life expectancy calculator shared by a friend. But the quick estimation was rather startling. I would live up to 91 years of age, it said. Even if the findings were not absolutely accurate, I could not help but ponder, how I would fund 30 years of my (retired) life with what I saved in about the same time through my working life.

More often than not, people work up until a specific age, say 60, until they retire. That would mean you work for about 35 years (assuming of course, that you started at 25) and save up and invest enough to fund your life post retirement.

People are living longer thanks to conscious lifestyle and medical advancements which now means that your savings have to keep up for longer, as well.

We have all seen and read about the importance of saving early and enjoying the perks of compounding.

Most of us end up sidelining saving for retirement for a large part of our working lives. More often than not, it is pressures of owning a house, repaying education loans or safeguarding health that take away from the integral task of saving up for life after 60.

By the time we fulfill these financial goals, we are nearing the senior citizen status. But better late than never. Even a small contribution like Rs 1,000 invested every month at 45 will grow to more than Rs 3,46,000 (at 8% every year) by the time you turn 60. So even if you have not planned your retirement yet there is still some scope. A small effort can go a long way in funding your later years provided you start now. For all you know your second innings may end up being longer than expected. Are you prepared to survive your second innings? Watch this video to understand why you need to plan your retirement.

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