Rajiv Bajaj, Chairman and MD Bajaj Capital moderated a discussion on retirement planning with Amit Bivalkar, Director Sapient Wealth, Gaurab Parija, Head of Sales and Marketing at IDFC MF, P.V. Subramanyam, Author and Trainer, Rajesh Sodhani, Founder of Sodhani Investments and Satheesh Krishnamurthy, EVP & Head- Affluent Business at Axis Bank at the recently held Cafemutual Confluence 2019
While planning retirement, how do you balance between the certainty of spends like healthcare and uncertainty of markets and the economy?
Satheesh Krishnamurthy, EVP & Head- Affluent Business at Axis Bank
- In today’s environment of weak markets and news about strain in auto sector, failing of a co-operative bank and stress within non-bank lenders, one must think about protecting himself/herself.
- People are going to retire and not everyone continues to earn post that. So, investment plans are important. One should rely on power of diversification and senior citizens should take care of their family and write out their wills and legacy plans.
- Creating a will is important so that assets that are created over multiple decades leave a lasting legacy.
Gaurab Parija, Head of Sales and Marketing at IDFC MF
- Concept of a “will” is an alien concept, but will is important and one needs to share the will with your trusted family member or friend.
- Another challenge post death is that the family members have to figure where all the investments are.
- Need to plan for retirement comes much earlier.
- India is going through multiple structural changes, people may retire at 40 years and most people work in private sectors where there are very limited retirement benefits.
P.V. Subramanyam, Author and Trainer
- Retirement space is great opportunity for IFAs.
- From the age of 60 till the time of death is like a 20-20 match where there is no clear strategy.
- Strategy for 60-year-old and 90-year-old is different. Leave alone investments, these people may need help in withdrawing money from an ATM.
- IFAs should go to 60-year-olds; though this involves a lot of work, there is no competition from banks.
Rajesh Sodhani, Founder of Sodhani Investments
- At the age of 25, one shall plan retirement, so that one can retire at 45. I only plan retirement of young guys.
- If a person saves 25% of his earnings, then he can retire in just 20 years. Retirement planning should not begin at 60.
- IFAs should give advice to the sons and daughters of the family. We are giving financial solutions to independent females who would be financially independent after retirement.
Amit Bivalkar, Director Sapient Wealth
- Except retirement, for everything else you can take a loan; hence you need to plan properly for it.
- For retirement planning, one should avoid using the option of “Phone a friend” because what works for me may not work for you. Only IFAs have the expertise that can be invaluable.
- Why and what and how of retirement planning should be done on a case-to-case basis.
The importance of age expectancy or the longevity in retirement planning; what is the biggest takeaway for IFAs?
Gaurab Parija
- 50% of the people still don’t invest in mutual fund that’s the biggest takeaway, so we have huge opportunity in front of us.
- The value that advisors bring is clear and distinct.
- ‘Mutual fund sahi hai’ campaign needs to reach far more people.
Satheesh Krishnamurthy
- With children staying away from homes, retirement planning becomes very important for their parents.
- There is a big opportunity for the mutual fund industry as many people are still unaware of the industry.
P V Subramanyam
- Do not have blind faith in google and have a “registered will”.
- It is a fantastic opportunity for IFAs; make all your clients write out their will, it is worthwhile.
Rajesh Sodhani
- If we want to serve this country, we need to go out and plan retirement of every young person.
Amit Bivalkar
- In personal finance, nothing can happen without a personal touch. IFAs will be those persons who will help investors.
