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What Gen Z, millennials can do to prevent retirement crisis? Zerodha CEO Nithin Kamath explains


Zerodha CEO Nithin Kamath on Saturday said that retirement crisis could fast be problem as retirement age could drop faster after two-and-a-half decades and life expectancy is going up.

Zerodha’s Nithin Kamath in a series of tweets explain this and lists down steps that one can take to build a retirement corpus. He said that while earlier generations got lucky with long-term real estate and equity bull markets that helped them to create a retirement corpus, which is unlikely in the future.

“What Gen Z & even millennials don’t think about enough is that the retirement age is dropping fast due to technological progress & life expectancy going up due to medical progress. In 20 years, retirement could be at 50 & life expectancy at 80. How do you fund the 30 years?” he tweeted.

“If climate change doesn’t kill us all, retirement crisis will probably be the biggest problem for most countries 25 years from now. Earlier generations got lucky with long-term real estate & equity bull markets that helped create a retirement corpus. Unlikely in the future,” he added.

He lists down a four-point solution that can help youngsters plan their financial future. He advises to invest early and diversification of the portfolio, along with getting a comprehensive health insurance policy for oneself and others in family. along with others things.

1. Stop getting triggered by everyone trying to lend & stop borrowing to buy things you don’t need or depreciate in value.

2. Start saving early. Diversify across FDs/G-Secs & SIPs of Index funds/ETFs. Stocks are probably still the best bet to beat inflation long term.

3. Get a comprehensive health insurance policy for yourself & everyone in the family. One health incident is enough to push most people into financial ruin or set them back many years financially. Jobs don’t last forever, hence one policy outside of what is provided at work.

4. If you have dependents, they should be covered if something happens to you. Buy a term policy with adequate cover. In the worst case, this money in a bank FD should cover their financial needs.

However, he advised that the ‘biggest fix for most people is that they should stop taking loans.’

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