By 2050, 25 percent of the population of the OECD countries and 17 percent of the world’s population will be over 65 years of age, but only 24.8 percent of the world’s population will have reached adulthood. India is no exception to the current trend.
By 2050, the number of individuals aged 60 and above is expected to be about 315 million. Across the world, men undertake the task of monetary management and affect financial planning, including planning for retirement. Women’s financial planning receives little or no attention. Allow us to discuss retirement planning and the way to successfully plan and execute an equivalent more from the woman’s perspective.
What is retirement planning?
Retirement planning is the preparation for the time when an individual leaves the workforce and earns a job-related income. It’s a technique to determine a balance between current expenditure and savings to make sure a financially secured retirement. Retirement financial planning is significant for a smooth transition, adjustment, and success during retirement.
Why specialize in women?
Today, more women are participating within the workforce. Adulthood has specific implications for ladies as they often outlive men, devote less time within the workforce thanks to their caregiving roles, usually participate in part-time jobs/less-paid jobs/service positions that aren’t covered under pension plans, avail fewer pension benefits, and lower wages thanks to gender differences, etc.
Financial planning for ladies
One should start investing from the very beginning of one’s earning career. Financial planning may be a long journey, before embarking thereon, everyone can buy adequate insurance and an appropriate life assurance policy. One could also be young, but ill health and risk could happen at any point of your time. Aside from adequate insurance, also essential to create an emergency fund which should be adequate to six months of your bring home salary. Once you’re through with these basics, then start investing.
Suitable financial products
At a younger age generally, financial commitments are less risk appetite is more. In such a scenario, one might be happier by investing in preferably equity-based mutual funds through systematic investment plans. This may help in achieving future goals like financial security post-retirement, buying a house, etc. Upon reaching the second phase of the life cycle such as marriage and becoming a mother, women search for certain products like highly rated non-convertible bonds, debt-oriented mutual funds, Public Provident Fund, National Pension Scheme, etc.
Improving financial planning by women
Many empirical studies administered in India reveal that young women are less active in retirement planning. The studies cite reasons like lack of experience in investing, choosing among the range of monetary products, counting on the spouse, etc. Young women should be treated as a special niche market, financial advisors should provide step-by-step guidance and encourage them to start financial planning early.
The earlier culture of keeping financial discussions and responsibility for investment decisions restricted to male members of the family is slowly dwindling & dealing women should seriously do their financial planning.
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