In ancient Indian texts, it was believed that human life was divided into four ashrams—four stages representing different roles and responsibilities to oneself, family and society. In the same way, planning for retirement is also a four-stage process, and requires different strategies.
Stage 1—I want it all: This stage typically comes 10-30 years before retirement. It is a stage characterised by multiple priorities—the need to accelerate career growth and professional income, planning for children’s education, supporting aging parents, a desire to upgrade lifestyle, and the need to plan for retirement. With multiple goals to plan for, the short- and medium-term goals tend to get priority, leaving goals like retirement on the back-burner. Prioritisation of goals is key in this particular stage, and so is the need to understand trade-offs. Impact of inflation on each goal should not be underestimated. Seek professional help if needed.
