How Do You Want Your Dream Retirement To Look Like?

In 2022, inflation led to a 3.8% average fall in salaries globally. How can young people have their dream house?

Imagine not having to set an alarm for 7:00 a.m. or stressing about catching the 8:00 a.m. metro while mentally running through the to-do list of meetings and tasks of the day. Imagine living life at your own clock and on your own terms. And what is the ultimate goal?

For most of us it is about ensuring stability, a better future for the family and children, and a relaxed stress-free retired life. Now, retirement can mean different things for different people. Some may only start to do the things they long aspired to once they have achieved freedom from their corporate calendars. It could be anything from hiking to Machu Picchu or starting a boutique resort near the lakes, or building a dream house somewhere amidst nature away from the noise of the city. The goals can be many.

But achieving these goals come with a pretty penny and can seem overwhelming especially in the current climate where salary appreciation is hardly in line with the annual rise in inflation. India’s headline retail inflation rate rose to 5.55% in November, according to the Ministry of Statistics and Programme Implementation. Whereas a recent survey of 360 multinational companies across nearly 70 countries highlighted that inflation had resulted in a 3.8% average fall in salaries globally in the last year. India was fortunate to record a 2.1% positive salary growth in real terms. Leave aside the perils of ever increasing tax. In other words, your salary needs a hand to grow, stronger fiscal discipline and shrewder money management strategies to build your corpus. HDFC Life’s latest ad campaign Kal Ka Reality Check encourages young people to start saving early and strategise for their retirement plans.

Now, some have jumped onto the FIRE movement - Financial Independence so that they can Retire Early. Those who identify themselves as part of this group, tend to save as much of their income as possible by living extremely frugally and paying off all kinds of debts. But saving is only the first step to growing your money tree. It becomes a liability if it is sitting in your account when you can let your money work by investing it into a secure asset class.

HDFC Life Personal Pension Plus Plan is a regular premium deferred pension plan that helps you build your retirement corpus. The product offers an opportunity to participate in the profits of the participating fund of the company by way of bonuses payable to you at the time of vesting.

Key features of the plan include:

● Flexibility to choose your investment horizon from 10 to 40 years

● Participate in the profits of the participating fund of the company by way of reversionary bonuses (if declared) and any terminal bonus. (if declared).

● Assured benefit equal to 101% of total premiums paid to date on death or at vesting.

● Enjoy vesting benefits upto 75 years of age.

Investing your money into rewarding asset classes that help you maximise your savings is an easy and efficient way of beating inflation while working towards your ideal retired life.