We are referring to the character played by Mr. Amitabh Bachchan in a movie, Baghban and of course not his real life self.
Baghban film is a tale of a family where the parents (Amitabh and Hema Malini) sacrifice everything to nurture their four children, only to be left uncared for when they grow old. Amitabh and his wife Hema have raised a family of four sons who are nicely settled in their respective professions. Their life is filled with love and prosperity, and all this has been possible because parents spent all their income including their provident fund and gratuity to secure future of their kids. But after retirement, life suddenly changed. None of the four sons was ready to take their parents responsibility.
An elderly couple wish their children to care for them in their old age. But their children see and treat them as a burden. Unfortunately but this is true in the era we live in. Gone are those days when parents were considered next to God and taking care of old parents was considered as a duty and not as a burden.
In your retirement years neither you may have windfall gains by being the author of best-selling novel nor you may have an adopted son who would consider you as God. In reality, your retirement years will be defined by how much savings you have made during your earning years. The physical and financial assets that are accumulated in the income earning years are used to generate a passive income to support expenses in retirement. Planning early and executing the plan in a way that considers changing situations ensures that the financial security required for a comfortable retirement is achieved.
While you are saving for your retirement, you must never assume that the same money is available for any purpose. The money saved should be strictly marked for retirement purpose. Even for your children’s education or their professional purpose, you should never withdraw the saved money.
Retirement planning also requires periodic review to make sure that the estimates for income and expenses in retirement are relevant or need to be changed. Typically, every time there is a significant change in current income and lifestyle or expenses that are likely to continue into retirement, it is necessary to make changes to the plan. The change in income or expense will imply a change in the retirement corpus being accumulated and the periodic savings and investments that have to be made to achieve the new target.
The allocation of the savings being made to various types of investment will depend upon the age and stage of the individual. As the individual comes closer to retirement the portfolio has to be periodically rebalanced to shift away to less risky assets so that the corpus accumulated over the years is protected from a fall in value when it has to be available for generating the retirement income.
Having sufficient savings for your retirement years will not only make you comfortable but also make your kids comfortable. Don’t have high expectations from your children’s that they would take care of you, however if your kids do take care of you in your retirement years, consider yourself blessed.