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Pension Rations

The very real danger in pension investments is a gross miscalculation of requirements at the time of retirement. Thus you may actually end up investing less expecting returns which may be improbable at the time.
True, soothsaying ability would be helpful to see how things would be 20 years down the line. But that's limited to god himself.
It can be correctly expected that the buying power of the rupee will decline with the passage of time.

So we're stuck with a couple of problems here.
- The old may be getting older - but they're living it and increasing the cost on us.
- Also, the nuclear families in the current era reflect smaller family sizes. So a family of 2 kids supports an elder sample size of 4-6.
- Another trend is the lowering of the retirement age - call it the creative calling. So my 40+ years old banker retiring from active service joins the burden that we bear. He might have the investments to back his retirement. But he's moved from an active contributor to someone who is a pure consumer.
I haven't even started talking about government healthcare benefits.... That would require more learned discussion.

Now that we have some clarity on the nature of the beast, time we put a leash on him.

- Start saving more keeping estimations on returns on the lower end of the spectrum.
- Work longer, keeping at least 55% of estimated lifespan as working life. I'm talking about time spent earning a living, not school and college.
- Let's assume the theoretical lifespan is 80 years.
20 years - education etc
44 years - work like a man
16 years - enjoy retirement.


That's what I'm gonna do anyhow

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