How to Plan, Save and Invest Confidently for Your Retirement with 9 Lessons for Financial Freedom

Introduction: A Wake-Up Call for All Ages

As a CERTIFIED FINANCIAL PLANNER® and a coach at The Richness Academy, I’ve worked with hundreds of professionals—from ambitious 30-year-olds to 60-year-olds who suddenly realize they’ve missed the boat. What’s common across the board? An unspoken anxiety about retirement.

Recently, a survey conducted by Grant Thornton Bharat shook me up. It wasn’t the numbers. It was the stark mismatch between people’s expectations and their actual preparedness.

More than half (55%) of those surveyed expected a pension exceeding ₹1 lakh per month—but only 11% felt their current investments would actually deliver that.

Let me walk you through the 9 most critical lessons from this national reality check—and how you can prepare, save, and invest with confidence for the second innings of your life.

⸻

Lesson 1: Don’t Just Rely on Traditional Tools—Diversify

The survey found that 83% of Indians are depending on three instruments for retirement:

• EPF (35.4%)

• Gratuity (24.9%)

• NPS (23.1%)

While these are good, they aren’t complete. I once met a senior tech manager who had diligently maxed out his EPF and NPS contributions for 20 years. But when he calculated his retirement corpus, he found it woefully inadequate. Why? No equity exposure. No mutual funds. No real estate. No private pension planning.

The learning? Traditional schemes are safety nets, not launchpads. You need mutual funds, index funds, or even rental property to add acceleration to your retirement corpus.

⸻

Lesson 2: Know Your Number—And How to Reach It

Most people I speak to have no idea how much they’ll need in retirement. They throw around numbers like ₹50,000 or ₹1 lakh a month. But do they know the corpus required to generate that?

Assuming a 6% withdrawal rate, to get ₹1 lakh/month post-retirement, you’ll need roughly ₹2 crore to ₹2.5 crore. And that’s without considering inflation or healthcare shocks.

Unfortunately, the Grant Thornton survey found that 52% of respondents were only “somewhat aware” of how pensions are calculated, and 30% were completely unaware.

My tip: Sit down with a planner. Use tools. Run your own numbers. And review them every year.

⸻

Lesson 3: Increase Your Contribution Percentage—Aggressively

The data revealed something alarming. 74% of respondents were saving just 1–15% of their income toward retirement. Now compare that with global benchmarks where financial experts recommend saving at least 20–30%.

I once advised a young entrepreneur who assumed he could “save later when income increases.” When COVID-19 hit, his business stalled, and he had to dip into his tiny retirement fund to survive. The time lost in compounding cannot be regained.

What should you do? Automate your savings. Raise your SIP every year by 10%. Use salary hikes not just for lifestyle upgrades but for retirement acceleration.

⸻

Lesson 4: Confidence Comes From Clarity, Not Guesswork

One of the most eye-opening stats from the survey was this: 41.9% of Indians are not at all confident that their pension plans will meet retirement needs. Only 3.7% felt “extremely confident.”

When I ask clients why they lack confidence, the answer is almost always the same—“I don’t know if it’s enough.”

The solution? Create a retirement plan with yearly goals. Track it. Review it. Confidence grows not from having more—but from knowing that what you’re doing is aligned with your goals.

Clarity is a greater wealth-builder than mere income.

⸻

Lesson 5: The Younger You Start, the Richer You Retire

Here’s a personal story I often share in my masterclasses. Two sisters, both earning ₹50,000/month. One starts investing ₹5,000/month at age 25. The other waits until she’s 35. Even though the second sister invests more monthly to catch up, she ends up with half the wealth of the first one by retirement.

That’s the power of compounding. Starting 5–10 years early creates a lifetime of difference.

 If you’re in your 20s or 30s, the best time to plan your retirement is today. And if you’re in your 40s or 50s, don’t panic—just start. But start seriously.

⸻

Lesson 6: Early Retirement is Popular—But Are You Financially Ready?

According to the survey, 43% of respondents aged 25 or below wanted to retire by the age of 45–55. That’s admirable. But dreaming early retirement while contributing only 1–15% of your salary is like booking a world tour with ₹500 in your wallet.

I recall a couple from Gurugram who wanted to move to the hills and retire by 50. But when we ran the numbers, they were 80% short of their goal. With my help, we restructured their cash flows, invested strategically, and they’re now back on track—but with realistic expectations and a plan.

Want early retirement? You need early action and bigger savings.

⸻

Lesson 7: Most People Have No Backup for Health and Emergencies

Retirement is not just about travel and hobbies. It’s also about healthcare, unexpected costs, and peace of mind.

One client’s father had to undergo a surgery costing ₹8 lakhs. His health cover had lapsed unknowingly. That wiped out a portion of his retirement corpus. The family had to make drastic lifestyle changes.

Build an emergency fund. Keep a separate medical fund. Don’t just depend on corporate health insurance—it ends when your job does.

⸻

Lesson 8: Government Schemes Are Good—But Not Sufficient

Govt-backed plans like EPF and NPS are secure and tax-efficient. But they are not enough to fund your aspirations if your goals are ambitious or if you want to retire early.

The survey showed that 27% of respondents preferred private pension products offered by reputed financial institutions. There’s growing interest in high-return, diversified products—especially among younger professionals.

I always advise clients: Use the best of both worlds. Maximize tax benefits through EPF and NPS, but use mutual funds, equity, and annuities to plug the shortfalls.

Diversify not just for returns—but for flexibility and peace.

⸻

Lesson 9: Financial Literacy is the Real Pension Plan

More than 80% of the problems in retirement planning stem from one root issue—lack of financial education.

Whether it’s awareness of pension calculations, corpus goals, inflation-adjusted returns, or SIP strategies—most people rely on guesswork, social media, or outdated advice from relatives.

This is why I launched The Richness Academy—to help individuals take control of their money story. When people learn to take full responsibility for their financial future, everything changes.

Education is the one investment that gives guaranteed returns.

⸻

Final Thoughts: The Retirement You Deserve is Built by Design, Not Default

The Grant Thornton Bharat survey isn’t just a data point—it’s a mirror.

If we truly want to retire with dignity, peace, and purpose, we must take proactive steps today. Retirement is not a date. It’s a lifestyle you have to design financially, emotionally, and mentally.

You don’t need to be rich to retire well. But you do need to be smart, consistent, and aware.

I’ll leave you with a quote that changed my own money life:

Also read: How to Attract More Money and Achieve Financial Freedom with a Powerful Mindset

“The best time to plant a tree was 20 years ago. The second-best time is now.” – Chinese Proverb

Let’s stop worrying about when we didn’t start. And instead, start confidently—now.

⸻

Take the First Step Today

 If you’re ready to gain clarity, confidence, and control over your retirement journey, join me in my free 90-minute Financial Freedom Masterclass.

Visit: www.therichnessacademy.com

📢 Join free live webinar —
Couple Finance Formula™ Register here