Amit, 52, works in a multinational company in Bhopal. He often reassures himself, “I’ll just keep working until 65. Saving for retirement shouldn’t be too difficult if I extend my career.”
On the surface, this seems like a perfectly reasonable plan. Amit is healthy today, experienced in his field, and respected at work. His organisation values his contributions. Why worry, when he can simply work longer and save later?
But here’s the reality: life rarely unfolds according to our best-laid plans.
What if Amit develops a health issue in his late 50s? What if his company downsizes during a recession? What if younger, cheaper employees replace him? Suddenly, Rajesh’s assumption of “working longer” turns into a dangerous gamble.
This isn’t just a hypothetical story. Recently, a 42-year-old CFO of a leading financial firm passed away from sudden cardiac arrest. He was at the peak of his career. Such incidents remind us that unforeseen events can disrupt even the most confident financial strategies.
And yet, Amit's mindset is not unusual. Across India, millions of professionals are silently relying on the same belief: “I’ll work longer to make up for lost time in saving.”
It feels easier than cutting expenses, investing regularly, or planning with discipline. But this false sense of security comes at a heavy price. With rising medical issues, fewer opportunities for older workers, and no real social safety net in India, “working longer” is not a plan. It’s a bet — and a very risky one.
Counting on Working Longer? 7 Reasons It’s a Risky Bet
1. Health Issues Can Shorten Careers
Lifestyle diseases are on the rise in India. Conditions like diabetes, hypertension, and heart disease are being diagnosed earlier and with greater severity than in many developed countries.
A professional in their 50s who looks perfectly healthy today may face health problems that force early retirement tomorrow. When income suddenly stops, families face a double financial burden — day-to-day expenses plus medical bills.
One alarming study shows that Indians suffer heart attacks almost 10 years earlier than people in Western countries. Nearly two-thirds of cardiovascular deaths here are classified as “premature.”
You cannot predict such setbacks. But you can plan for them. Depending on “good health forever” to sustain your career is not a retirement strategy.
2. The Job Market Doesn’t Favour Older Workers
India’s job market is notoriously unfriendly to workers over 50. Employers prefer fresh graduates who adapt quickly to new technology and cost far less in salaries.
An experienced 58-year-old manager might bring wisdom, but when it comes to rapidly evolving fields like IT, finance, or media, employers often choose younger candidates.
Even if you remain employed, the workload and stress may become harder to manage with age. Fatigue, slower learning curves, and workplace politics can make “working longer” more of a burden than a safety net.
3. Healthcare Inflation Outpaces Salaries
Healthcare costs in India are climbing at 10–15% annually, far higher than the average salary increase.
A surgery that costs ₹2 lakh today might cost ₹5–6 lakh a decade from now. Even if you’re still earning, your paycheck may not keep pace with this steep rise.
One survey revealed that 71% of Indians already feel medical costs have skyrocketed, and nearly 1 in 5 admit postponing treatment because it’s unaffordable. If this is the situation today, imagine what it will look like 15–20 years down the road.
Relying on “working longer” does nothing to counter healthcare inflation.
4. Financial Dependents Add to the Pressure
In many Western countries, parents stop financially supporting their children by the time they finish college. But in India, parents often continue to pay for children’s post-graduate education, marriage expenses, or even the purchase of a home.
Add to this the responsibility of caring for aging parents, and many middle-aged professionals find themselves “sandwiched” between two dependent generations.
Working longer doesn’t necessarily mean saving more. In reality, most of that extended income may go toward supporting dependents, leaving little to build a retirement corpus.
5. Burnout and Reduced Productivity
Working into your 60s may sound practical, but in reality, our bodies and minds slow down with age.
Keeping up with fast-paced, younger colleagues can be mentally exhausting. Many professionals in their late 50s and 60s report burnout, loss of motivation, and declining productivity.
If your career depends on peak performance, burnout can derail your ability to extend your working years. By then, finding alternative employment is extremely difficult.
6. No Strong Safety Net in India
In countries like the U.S. or U.K., extending your career can be slightly safer because of state pensions, subsidized healthcare, and social security benefits.
India has no universal safety net. Pension schemes like EPF or NPS cover only a small portion of the workforce. For most private-sector employees, when the salary stops, income stops.
Without personal savings and planning, working longer becomes a fragile bridge built over thin air.
7. Delaying Savings Destroys Compounding
The biggest cost of postponing retirement planning is the loss of compounding.
Compounding allows small, consistent investments to snowball over decades. Starting at age 30 with ₹10,000 a month can build a retirement fund of over ₹2 crore by 60 (assuming 10% annual returns).
But if you delay until 50, the same effort yields barely ₹20 lakh. No matter how long you work, you simply cannot “catch up” on lost compounding.
Time is the single greatest factor in wealth creation. Every year you delay, you lose a chance at exponential growth.
The Smarter Way: Building a Real Retirement Plan
So if “working longer” is not a plan, what should you do? The answer lies in proactive, disciplined financial planning. Here are the building blocks:
1. Start Early, Even If Small
The earlier you begin, the less you need to save each month.
For example:
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Start at age 30: Invest ₹5,000 per month → end up with ~₹1.15 crore by 60.
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Start at age 40: You’ll need to invest ~₹15,000 per month for the same result.
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Start at age 50: You’ll need ~₹50,000 per month — which is unrealistic for most households.
Even modest contributions, if started early, compound into massive wealth.
As Warren Buffett wisely said: “Do not save what is left after spending; spend what is left after saving.”
2. Set a Retirement Corpus Goal
Saving without a target is like running without knowing the finish line.
A common rule of thumb: aim to accumulate 20–25 times your annual expenses before retirement. This ensures you can maintain your lifestyle, cover medical costs, and handle emergencies.
For instance, if your household expenses are ₹1 lakh per month (₹12 lakh per year), your retirement corpus should be at least ₹3 crore in today’s value.
Having a clear number helps you plan backward and stay disciplined.
3. Protect Yourself With Insurance
Insurance is often overlooked in retirement planning. Yet one health crisis can wipe out years of savings.
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Health insurance shields you from skyrocketing hospital bills.
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Term insurance ensures your family’s financial security if something happens to you.
Think of insurance not as an expense, but as the foundation of your financial stability.
4. Review and Adjust Regularly
Retirement planning isn’t a one-time exercise. Review your plan every 2–3 years.
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As your salary increases, raise your monthly investment.
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As you approach retirement, gradually shift from riskier equities to safer debt instruments.
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Reassess your corpus target to account for inflation and lifestyle changes.
This periodic adjustment keeps your plan relevant and resilient.
5. Build Passive Income Streams
Instead of relying solely on a salary, create income sources that continue even if you stop working.
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Rental income from property
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Dividends from stocks
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Interest from bonds or deposits
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Part-time consulting or teaching
These streams reduce dependence on your primary job and make retirement less stressful.
6. Diversify Your Portfolio
Relying only on fixed deposits or gold won’t protect you from inflation. A balanced portfolio is essential.
A typical diversified approach might include:
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Equity mutual funds / ETFs for long-term growth
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PPF, EPF, or bonds for safety and stability
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Gold or REITs for inflation protection and diversification
This mix ensures growth while minimizing risks.
The Bottom Line: Don’t Gamble With Your Future
Working longer feels like an easy solution today. But in India, with health risks, limited opportunities for older workers, rising costs, and no strong safety net, it is not a plan — it is a gamble.
The real path to financial security lies in:
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Starting early
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Saving consistently
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Protecting yourself with insurance
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Building passive income
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Diversifying wisely
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Reviewing and adjusting regularly
The earlier you begin, the lighter the burden feels. Procrastination, on the other hand, only makes the climb steeper.
Retirement should be a time of freedom and peace, not fear and compromise. By acting now, you can ensure that your later years are not dependent on luck, health, or uncertain job markets — but on your own solid, proactive planning.
Disclaimer: This article is for educational purposes and aims to provide insights into financial planning. It is not professional investment advice. Please consult a qualified advisor before making financial decisions.
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