Most often, investing, wealth building, and savings are associated with people who are still in their professional careers. Hence they work on the idea of building a corpus for the old age when they retire and have a Steady Growth In Wealth Is Essential For Retirees.
One can change jobs, take risks in investing, and travel to other places for work to get extra money while still working, but it becomes difficult to try these out after retirement.
However, building wealth after retirement is a necessity too. Here are the reasons that necessitate growth in wealth even after retirement.
INFLATION EATS UP SAVINGS
Inflation is a harsh reality in today’s economy. The level of inflation varies year after year, but it exists and will exist in the future as well. Governments across the world have found their own comfortable inflation rate and tried pushing it below or around that number.
Inflation is like an indirect tax. It reduces the purchasing power of the currency. In the last few years, the inflation remained at 5 per cent. To maintain your current lifestyle, your expenses would need to increase by 5 per cent each year. Inflation indicates that the value of your money is depreciating by that percentage every year. Moreover, occasional expenses, such as gatherings, weddings, and festivals also incur expenses that keep going up every year.
Hence, it is important to earn a return above the prevailing rate of inflation to maintain the same lifestyle. This makes steady growth in wealth a must for survival in the long term.
MEDICAL SERVICES ARE GETTING EXPENSIVE
Medical services are getting expensive. Not only medical services, but all the associated services related to healthcare are getting expensive. Insurance premiums, drug prices, and general health check-ups are regular expenses that are increasing every year.
All these expenses will come from your retirement corpus. Hence, your retirement corpus must earn a return to keep pace with these expenses.
YOU WANT TO LEAVE SOME LEGACY
Finally, we are human beings with emotions and a sense of time and legacy. We all want to leave a legacy or something that makes at least our loved ones remember us positively. Leaving a Will, setting up a business, discovering something new, and building a charitable institution are all examples of people’s quest to leave behind a legacy.
Building wealth should be a continuous endeavor. It’s important to strike a balance between enjoying your retirement years and ensuring that your wealth continues to grow. By making wise investment decisions, managing expenses, and exploring growth opportunities, you can maintain financial stability and enhance your overall retirement experience.
The author is an Independent Financial Journalist