How To Plan A Comfortable Retirement? Zerodha CEO Offers Tips

Besides bagging a high-paying job and leading a comfortable life during our prime years, most of us also wish for a financially secure retirement life. Planning for retirement involves saving, investing, and other measures that are necessary to ensure that you have enough funds for the post-retirement period..People usually start planning for retirement in their late thirties. However, according to Zerodha's Chief Executive Officer (CEO) Nithin Kamath, this could soon change. In a Twitter thread, Nithin Kamath explains how retirement could become the biggest concern in the coming years as life expectancy increases and the retirement age drops..In his first tweet, Nithin Kamath asserted that the average retirement age is falling due to technological advancement while life expectancy is increasing due to medical progress. "What Gen Z & even millennials don't think about enough is that the retirement age is dropping fast due to technological progress & life expectancy is going up due to medical progress," he wrote..Mr Kamath predicted that in the coming 20 years, retirement age could come down to 50 years while life expectancy may touch 80 years. "How do you fund the 30 years?" he asked..The CEO stressed that the retirement crisis may emerge as one of the biggest issues facing most countries 25 years from now. He added that the early generations were “lucky with long-term real estate & equity bull markets that helped create a retirement corpus” but this would not be the case in the future..Offering solutions, Nithin Kamath advised against borrowing for unnecessary purchases and for things whose value might depreciate in the future. He emphasised upon saving early and diversifying investments. “Stocks are probably still the best bet to beat inflation long term,” he added..Mr Kamath highlighted the importance of good health and urged that one get a comprehensive health insurance for each member of the family. He also advised that since jobs security is not always there, so an additional health policy must be bought in addition to what is provided by one's employer..Nithin Kamath added that if one has dependants, then a term policy with adequate cover should be purchased for them. “In the worst case, this money in a bank FD should cover their financial needs,” he wrote..The Zerodha co-founder reiterated that not opting for loans can be “the biggest fix for most people”.

How To Plan A Comfortable Retirement? Zerodha CEO Offers Tips

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