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Thursday, September 9, 2010

What is Retirement

Retirement means that you will not be working or no longer working with the organization with whom who have worked for quite a long time.

On account of retirement, you have to put up with whatever savings you have in hand. The interest earned on your savings will be your income for your retirement period, say from the day when you retire till your existence.

During service, you can accumulate wealth but during retirement, you tend to decumulate this capital.

Today with rapid improvements in medical science, life span is increasing. An average person retires around the age of 55-60 years, they could have another 15-20 years to live. 

This means that their savings should exist till this time. So you need to have funds to manage for another say for atleast 15-20 years post retirement assuming a life span of 75-80 years. 

Start Planning today itself. 

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