Deepak Nair dedicated his entire life to working hard for his family's well-being. After extensive education, he embarked on his career at the age of 27 and struggled to establish himself. Stability found him in his 30s when he married, purchased a house, and raised two children with the aspiration of providing them with the best possible future. Like many parents, he considered no sacrifice too significant for his children's success.
Throughout the years, Deepak secured both a housing loan and an education loan to facilitate his son's higher education abroad. He always believed that his diligent work would ensure a comfortable future. However, as he neared retirement, he was confronted by harsh realities.
By the age of 60, Deepak still faced outstanding debts. The EMIs for his house and his child's education remained burdensome. Meanwhile, his now adult children, residing in different cities, were preoccupied with their own lives and responsibilities. Bereft of joint family support and without a pension, Deepak found himself in a precarious financial situation.
As time progressed, medical expenses began to accumulate. With healthcare costs in India rising sharply, the limited health insurance he had procured in his 50s scarcely covered his needs. Each hospital visit further depleted his savings, making his aspirations for travel and a serene retirement seem unattainable.
Contrastingly, Deepak’s close friend Rajan had taken a different approach. Rajan began investing in his 20s, built a substantial retirement fund, and secured comprehensive health insurance early on. By 62, Rajan enjoyed a stress-free life in a comfortable senior citizen community, while Deepak continued to work part-time merely to sustain himself.
One day, Rajan advised Deepak, "Retirement is not about ceasing work; it is about having the choice to stop. You constructed a bridge for your children but neglected to complete your own. Your generous sacrifices have left your future unsecured."
Deepak recognized his miscalculation. He would not be in his current predicament if he planned his finances earlier, settled his debts before retiring, and accounted for escalating healthcare costs. Although it was too late to alter his circumstances, he hoped younger generations could learn from his experience.
The lesson is unequivocal, retirement planning should not be an afterthought. It necessitates early preparation, disciplined savings, and professional advice. Those who initiate their planning in their 20s and 30s and adhere to disciplined savings will achieve financial stability, while those who delay may find themselves stranded halfway.
Plan today to avoid struggles tomorrow.
Dr. Ashok Chandran, Certified Financial Planner®
Ph.D, SMP(IIM-Cal), QPFP®, CFP®, CMC®, MBA
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