This is one goal that must be taken seriously and thought of the moment one starts earning....

1. Don't fool yourself about retirement
This is one goal that must be taken seriously and thought of the moment one starts earning....
Author : iFast Content Team
This week, Money News threw up 5 interesting statistics where the American public is
concerned.
 46% of Americans have less than $10,000 saved for retirement
 40% of baby boomers now plan to work until they die
 36% of Americans say they don’t contribute anything at all to their savings
 87% of adults say they are not confident about having money for a comfortable
retirement
 Expected retirement age is up to 67 from age 63
In India, we have data from HSBC’s The Future of Retirement programme to go by. The latter is
an independent study into global retirement trends. This year it came out with its report “A new
reality”, the eighth in The Future of Retirement series based on a survey of more than 15,000
people in 15 countries. Here are some insights from the India report as well as suggestions.
 Fear as a motivation
Almost half (49%) say that the prime reason for retirement saving is the fear of not having
enough to live on later on in life. When asked which is the biggest fear concerning retirement,
54% say it is financial hardship and 43% worry about not having sufficient funds for health care
needs and expenses. So it’s not surprising to note that 44% plan to continue to work to some
extent even after retirement.
 Expect changes
Be aware of how major life events affect saving for retirement. As most people will be affected
by these events at some point in their lives, it is important to prepare in advance to minimise
the detrimental impact on their retirement savings. Respondents listed buying a home, paying
for a child’s education, the economic downturn, and having to pay for a dependent as the most
significant life events that impacted their ability to save for retirement.
 Get real about your retirement needs
Globally, respondents believe their savings will run out on average halfway through their
retirement. That is a very frightful situation to be in. With life expectancy increasing, people
need to be aware how long their money will have to last, so that they can take steps to avoid any
shortfall. In India, most respondents on average expect their retirement to last for 15 years, but
their retirement savings to last for only 10.
 Put your savings priorities in order
Globally, 22% are not currently saving anything for retirement. A proper balance must be
established between spending on short-term needs and saving for long-term goals such as
retirement. Shifting priorities now towards longer-term saving can lead to a more prosperous
future. Do not be under the misconception that you will be able to get by on a much lower
income: 98% said they need all of current income to stay comfortable in retirement.

2.  Plan for the future
There is a direct link between having a financial plan and saving more. Globally, 44% say they
saved more for retirement with a financial plan in place. In India, this relationship is even
stronger with over half the respondents (54%) saying financial planning led to increased saving
for retirement. Having a financial plan and just saving something, however small to start with,
can make a big difference to retirement income in the long run. The respondents in India cited
life insurance, cash savings and deposits, personal pension schemes, mutual funds, and stocks as
the key components of retirement income.
 Use professional advice
Looking at respondents with average incomes, those who use professional advice when
planning their future have the greatest levels of retirement and other savings. Developing a
financial plan with a professional adviser can help ensure that all retirement needs are
identified, gaps avoided, and eventualities covered.
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