Retirement is a stage of life that most of us look forward to: It is the time when we can finally sit peacefully and enjoy the rhythm of life. According to a survey, India’s elderly population is expected to go up by 41%¹ and reach 194 million by 2031. Around 52%² of Indians presume that their children will take care of them when they get old, providing them with emotional and financial support. With a rapidly changing society where the number of ‘empty-nesters’ is increasing, retirement, particularly financial readiness, can be challenging.

We often seek guidance from friends and family on retirement planning. However, since the past many decades, films have portrayed the changes in society and how elderly people must not overlook building a self-reliant future. Through their deep understanding of life and relations, and fine storytelling that strikes the right chord, here is what Bollywood movies have been telling us about planning for retirement:

1. Do not depend on anyone for your retirement, make your own plans.

Two OTT releases in 2021 and 2023 highlight the importance of elderly people making decisions on their own. The more recent film depicts financial autonomy as the widowed matriarch sells off the property to live an independent life, while the other film is a reminder of how things fall apart for a widowed housewife whose family is divided on whether the mortgaged mansion, considered too big for her, should be sold off. It underscores the significance of retirement planning to ensure the spouse is financially secure. Set your financial goals in advance, note down all your income and expenses (take inflation into consideration), and then set a target for the corpus to be built.

2. Though a child must look after you after retirement, it is not a wise decision to be completely dependent on them.

One Bollywood movie in 2003 is a classic illustration of the complications that can arise due to lack of appropriate retirement planning. The elderly couple at the centre of the story, who had to go through a lot of hardships because they were not financially secure, assumed their kids will take care of them when they grow old and retire. However, their kids, with their own families, chose their own lives over dutifulness to their parents, thus causing a lot of pain to them. The film conveys the value of making smart financial judgements, building savings, and investing wisely for retirement rather than being dependent on anyone while focusing on the importance of promptly discussing retirement setups and building a retirement corpus. By the way, could you guess which film this is?

3. If there is an opportunity to earn, do not hesitate to grab it.

That is exactly what late actor Rishi Kapoor did in one of his movies, after his character felt bored and lonely when his company forces an early retirement on him. His sons are busy with their own lives and don’t have time for the father. After stumbling upon many odd jobs, he finally pursues his passion for cooking. This is in turn opens up an opportunity for him to earn and he gets on the ride. Retirement is not the end of one’s ability to explore opportunities and continue to earn. If you have the physical ability and the intent to remain engaged, grabbing such productive opportunities can be helpful. This is especially beneficial for people who had unexpected expenses in their life hitting their net worth or do not have a strong savings pool. This ensures that a steady stream of money keeps flowing in, creating a better financial cushion to fall back on.

4. Documentation can save a lot of hassle.

Even the best of businesses can have rainy days, especially if the founder is incapacitated or dies with the secret recipe of success. In this film released in 2012, the story centers around a restaurant that has lost its old charm and on the verge collapse. Behind this downfall is the absence of its most popular dish on the menu, the secret ingredient of which the original creator, here the grandfather, forgot to document before his demise.

While the story is about a recipe not recorded to be passed on to the next generation, this can also hold true for one’s inheritance of wealth. Thus advance documentation in the form of a will and clear mention of nominees in financial documents is extremely important for seamless transfer of wealth.

Retirement planning is often underestimated and procrastinated, leaving many individuals unprepared for their future. It is not just about budgeting and saving money, it is a strategic approach that requires early planning to ensure you enjoy a dignified and stress-free retirement. Adequate retirement planning allows us to maintain our desired lifestyle, cover unforeseen expenses, and have the financial freedom to pursue our passions. Start early, budget adequately, and invest strategically to reap the rewards of your hard work in the golden years.

The views expressed in this article are for knowledge/information purpose only and is not a recommendation, offer or solicitation of business or to buy or sell any securities or to adopt any investment strategy. Aditya Birla Sun Life AMC Limited (“ABSLAMC”) /Aditya Birla Sun Life Mutual Fund (“the Fund”) is not guaranteeing/offering/communicating any indicative yield/returns on investments. In the preparation of the material contained, ABSLAMC has used information that is publicly available including information developed in-house. The information gathered and the material used in this document is believed to be from reliable sources.

Source:
1: Retirement: Over 80% urban Indians fear running out of money in retirement - The Economic Times (indiatimes.com)
2: How Indians plan their retirement, in 5 charts | Mint (livemint.com)

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