We often dream of buying a home, funding our children’s education or taking that once-in-a-lifetime vacation. But one goal quietly overshadows them all—retirement.
Unlike other milestones, retirement comes with a unique challenge: there are no loans to fund it. You can take a home loan, an education loan or a business loan. But after retirement, no bank will finance your monthly groceries, medical bills or holidays. You live off what you have saved. That’s why retirement is, and will remain, the most important financial milestone.
Why retirement planning is more urgent today
1 September 2025
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AI and layoffs. The world of work has changed. With automation, jobs are less secure. What looked like a “job till 60” is now at risk by 45 or 50.
Global uncertainty. Trade tensions, recessions and conflicts can hit income growth and job stability. If the world can’t guarantee your pay cheque, your savings must.
Longevity risk. Our parents often lived till 70–75. Many of us may live till 85 or 90—25–30 years of expenses with no salary.
Rising medical costs. Healthcare inflation often runs in double digits. A surgery that costs ₹3 lakh today could be ₹10–12 lakh in a decade. Without insurance and liquidity, your retirement corpus can get drained.
Longevity, layoffs and rising medical costs threaten retirement security
What you can do now
Start early with SIPs. Even small monthly investments compound into a large corpus. For example, ₹10,000 a month for 30 years at a 12% annualised return can grow to ~₹3.5 crore. Start 10 years later and you may end up nearer ₹1 crore.
Secure your health. Take adequate family or individual health insurance and consider critical-illness cover. In metros, a ₹50-lakh sum insured is a sensible floor. Insurance protects your savings from medical shocks.
Maintain liquidity. Keep 6–12 months of expenses in liquid or short-duration debt funds so you don’t break long-term investments during job loss or emergencies. Avoid products that are hard to exit.
Create more than one pay cheque. Retirement isn’t a vow of zero earnings. Keep one small stream you enjoy—consulting a client, teaching a weekly class, or mentoring for a fee. Let your money add the rest through interest and dividends; if you already own property, modest rent helps too. Two or three steady streams reduce the pressure on your corpus.
Diversify, then stay the course. FDs keep money safe but rarely beat inflation. Use equity funds for growth and quality debt funds to steady the ride. Keep a small hedge in gold or a multi-asset fund. Don’t overload on property—it’s lumpy and hard to sell. Review once a year, keep costs low, and avoid products you can’t exit quickly.
Move from SIPs to SWPs. While you earn, SIPs help you build wealth. In retirement, Systematic Withdrawal Plans can provide steady, tax-efficient income while the corpus continues to grow. Keep two to three years of expenses in debt and the rest in growth assets; refill the debt bucket after good equity years.
The bottom line
Uncertainty around jobs, income, health and life expectancy is high. Every goal matters—your child’s education, your home—but retirement is the only one that lasts decades, offers no loan and depends entirely on you. Planning for retirement and passive income is not optional—it’s urgent.
About DhanCreators
DhanCreators helps families achieve financial freedom through disciplined investing. With expertise in mutual funds, equity broking and wealth management, we design personalised plans—from SIPs for wealth creation to SWPs for reliable retirement income—for 900+ investors across business owners, salaried professionals and HNIs.
Disclaimer: The Views are Personal and not a part of the Outlook Money Editorial Feature
