Consider these 9 things before investing in mutual funds!
What is the right way to invest in mutual funds? How do mutual funds work? What kind of risk is involved? Which fund is right for whom? What things should be kept in mind before investing? Watch this video to know-
The sunset years of life should ideally be about basking in the glory of achievements and wallowing in fond memories. But in India, it is unfortunately a much-dreaded period for many as they spend years worrying about navigating financial potholes in the last phase of life. A majority of salaried Indians spend their professional lives making sacrifices in personal lives for progenies and paying taxes and are left to fend for their own at a stage when they are the most vulnerable — emotionally and financially.
The 2021 Mercer CFA Global Pension Index survey has painted a sorry picture of the pension system in the country. It has stressed the need for reforms to revamp existing structures. The survey noted that the Indian pension system has been ranked 40th out of 43 systems and had the lowest rank in the adequacy sub-index. In other words, the pension system in the country is simply not adequate to meet the needs of senior citizens. This assessment shows where we have fallen behind as a nation and how we have failed to acknowledge and cater to the needs of a section of the population which has played a pivotal part in nation-building.
A sustainable monthly pension should not be the preserve of only government employees. The government should formulate policies to ensure pension coverage increases at a rapid pace so that social security does not remain a privilege for few citizens. To be sure if such a system can be put in place, it will also help in raising aggregate demand in the economy of a large array of goods and services.
For those who do not have a government job – and a very small fraction of the population have them – the only pension available is through painful savings throughout the earning life of an individual. In a country where stable jobs are few and far between, it would be a fallacy to believe that individuals in prime earning capacities will start saving for retirement years well in advance. Human nature is moulded by circumstances. So, the onus is on the government to put in place a structure that helps citizens lead a stress-free life post-retirement.