Important Facts of Personal and Professional Life to ponder:
• Most of us will live beyond 80 years of age. For the employed, this implies that they will live for 20+ years after they stop earning (that is, after their retirement). Private jobs are not pensionable. Even some of the government jobs are not pensionable.
• An own flat/house, children’s education, and their marriage are some major expenditures in everyone’s life. And, also provide for our retired life. We must, therefore, plan to save/invest adequately and quite early in our career.
• Monthly medical expense will increase after one crosses 50.
• Hospitalization charges are very expensive. All of us must have proper Medical Insurance policy to cover our family. And, we must take care of our health to avoid hospitalization (as far as possible).
• Joint Family system is almost extinct. Most of us will be away from our child/children during our post-retired life. Be mentally prepared that some of us may have to spend the last phase of our life in Old-Age Homes.
• At 5% annual inflation, our cost of living will increase by 1.6 times every 10 years. For example, if your age is 30 and your current monthly expenditure is Rs 10,000.00, then, to maintain the same standard of living, you will require approximately Rs 16,000.00 pm at 40, Rs. 26,000.00 pm at 50, Rs. 41,000.00 pm at 60, Rs 66,000.00 pm at 70, and Rs 100,000.00+ pm during 75-80 years.
• For the post-retired phase, you must have some source(s) of income to sustain and live (without depending on your child/children). You may also invest in assets, that can be liquidated in a phased-manner, to support the retired living.
• Most of us may plan to postpone the retirement to 65 (or even 70, if health permits).
• Every company operates in a highly competitive market. Only those companies that perform well, that foresee changes in the market, that adapt themselves to the market dynamics, … (vis-à-vis competition) will be able to earn adequate profits to remain-in-business and to grow. Every company has to be ahead of its competitors in some areas/aspects to survive/grow in every industry.
• Since the collective quality of all employees reflects the quality of a company, it is imperative that the company must have ‘performing’ employees (to survive and grow in the competitive industry).
• Performing employees are paid well and are in demand. To earn a good income, one must possess the relevant skillsets (among other things). And, to remain a ‘performing’ employee, one must CONTINUALLY upgrade the relevant skills and also acquire new ones.
• Unlike the earlier generation (of our parents), most of the current generation employees would work in more than 5 companies during their career span. We are witnessing this general trend.
• Only those who are MARKETABLE will get job-placements of their choice when they plan to move-on to another company. ‘Performing’ employees will always be marketable because of the scarcity of ‘performing’ manpower in most companies.
Therefore, to address financial aspects of the above points, we must consciously Maintain Our Marketablity till the last day of our retirement. By doing so, we will remain a ‘performing’ employee, and will be able to align ourselves to the changing working environment in the organisation/industry.
Auto-Suggestion Tip: One may set an alarm in the mobile phone to remind on the first Sunday morning each month to self-introspect and to rate one’s Marketability.
Jaikishan
11th June 2012
