Summary of this article
Retirement now viewed as freedom for travel and self-discovery.
Early financial planning enables stress-free global travel post-retirement.
Smart investments, SIPs, and insurance ensure worry-free senior adventures.
By Ishkaran Chhabra
In India, the perception of retirement has seen a major change in recent years. The concept of a "Second Innings," introduced by the film Lage Raho Munna Bhai to describe life after retirement, has changed the way Indians perceive this phase of life. Retirement is no longer about banking on a pension or depending on children; it is now seen as a chance to feel a new kind of freedom and self-discovery.
For many people, an opportunity to explore the world is minuscule or long-awaited. Per a report by Visa, travel overseas by Indians 65 years and older will increase threefold by 2025, rising 11.4 per cent every year.
This significant increase in seniors travelling is a result of two things: the availability of growing convenient travel options and increasing financial independence owing to planning at an early stage. Many retirees begin planning for the 'second innings' during their working years, which is the foundation for a retirement that offers them travel options and the opportunity to enjoy a lavish retirement. The practice of saving a fixed portion or setting up an SIP off the income has made a substantial difference to their post-retirement financial portfolios. Newer Systematic Investment Plans (SIPs) focused on retirement funds have further helped create a strong corpus that compounds over time and bears fruit by the time they retire.
Even modest amounts each month can grow into a fund to pay for comfortable travelling aspirations if one starts early enough. Having the freedom to travel without touching emergency funds, fixed deposits, depending upon children, or resorting to last-minute loans is yet another advantage of setting aside a small proportion of income for long-term goals. Compounding transforms modest amounts of money into large sums, which can go towards a comfortable retirement, and the sooner one starts, the better.
Most people consider travelling as a source of making memories and also for entertainment, so financial planning should be meaningful, besides earning returns. A well-planned retirement aims to match an investment strategy with personal goals post-retirement like wellness, travel, or charity. Today's retirees can choose from a variety of investment options like annuity products, dividend-yielding mutual funds, and international investment options to fulfil their travel dreams.
With the rise of annuity products, dividend-yielding mutual funds, and global investment options, retirees today can now choose multiple income streams to support a life of mobility. The key here is ensuring liquidity for immediate goals like travel and other leisure activities is well balanced with the long-term retirement corpus.
For instance, maintaining a healthy mix between growth-oriented funds and fixed-income products gives both stability and flexibility. Many retirees are now setting up travel-specific SIPs, dedicated investment accounts solely for retirement. This not only creates a saving habit but also monitors the progress towards the next destination.
"Wander without worry" is not just a quote in today's age; it's the result of thoughtful preparation and planning. Health coverage, travel insurance, and emergency funds are as important as flight tickets and itineraries, and a well-planned retirement focuses on all these. A solid financial plan mitigates the risks of unforeseen costs or a downturn in the economy.
With smart financial planning, one can wander the world without worry.
Every travel journey taken during one's retirement days are a celebration of the years of discipline, patience, and purpose that he/she has put in. Financial planning goes beyond mere numbers, it's about contributing towards the freedom to live one's best years on their own terms. After all, the freedom to travel is, the finest form of wealth.
(The author is Chief Investment Counsellor & Founding Partner at Centricity WealthTech)
(Disclaimer: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
