When to retire?

Should we choose our own date for Retirement ?

Everyone has to work, for livelihood, for self, family or children but till what age, we or self employed are required to do work for the sole sake of livelihood.

I define retirement as making work optional. Retirement or the state of feeling retired is about being able to do what you want, when you want, where you want, with whom you want, at the time you want, on your terms, regardless of your age.

We all can choose our own age and time to retire. Once we feel that we do not need to work for the sake of living and that we will be able to live off the income generated by our savings, Capital and investments, it is time to start living not for the sake of working for others but to pursue our hobbies and desires.

There is no concept of "Income Inequality". This whole issue is a non-issue. We have chosen what we do for a living based on our own motivations, our own decisions on what we like to do, what we are able to do, what gives us satisfaction and what will also provide for our family. We knew what our income opportunities were when we first got into this profession – We are not wealthy, we are not one of the 1%, the 10%,the 20% - and we don't care. We have a great family, a modest home, a reliable car and we are happy. Part of our happiness stems from simply not envying others, and not worrying about what others have and we don’t.

Buddha said;

There are sufferings or unhappiness. 

The cause of suffering is desires and attachments.

To reduce your suffering or unhappiness,

Reduce your desires and attachments.

I should also say that at one point everyone of us have worries about wealth and wanted to make lots of money, we all had opportunities, some of us made it and some not, and many of our colleagues made lots more, but this is not an issue to worry us anymore. This is not what life is all about. This money and the rewards we ultimately seek are not financial. We are a much happier, much healthier, and much saner person to realize it.

We don’t have to work for sake of others or merely for the sake of competition. We are complete in ourselves. We are not inferior to anyone else that we need to compete with others. The day we stop climbing and put the ladder down, we can have a quality life.

There is a saying in India in Hindi – 

पूत कपूत तो क्यों धन संचे,पूत सपूत तो क्यों धन संचे ! (Poot kaput to kyon dhan sanchay, poot spoot to kyon dhansanchay.) 

(if we have spoiled children than there is no need to save money for him as he will eventually destroy whatever you have saved for him and if he is capable child than also there is no need to save money for him as he can make his own money like we all did).

So why each one of us get so tensed about future of our kids. We do not have to spoon feed our children even after their education. That can lead to disastrous consequences for them. A word for our brother Judges, when you decide a case in favor of children of your friends or colleagues, you are not only violating code of conduct but loudly saying that such children are invalids who always needs crutches in life. If you feel that being children of your friends and colleagues, they are special Children, there is a home built for special children- Mother Teresa’s Home for special Children.  

There is an old adage;

First I was dying to finish school and start college.

And then I was dying to finish college and start working

And then I was dying to marry and have children

And then I was dying for my children to get admitted to ‘good’ educational Institutions

And then I was dying for their livelihood.

And now I am dying ……… and suddenly I realize I forgot to live.

When is the time to stop working for livelihood and start living? That is time when you are able to do what you want, when you want, where you want, with whom you want, at the time you want. When you can say no to work and do not have to work for livelihood and have made enough for you and your family to live off from the income from your savings, capital and investments.

How do you determine the amount of retirement savings you will need to retire? By applying a simple mathematical formula. Determine how much annual income you will need in retirement, to live the lifestyle you want — that should be in today's Rupees. Multiply that amount by balance number of years you expect to live and you'll arrive at what I call your Financial Independence Number (FIN). For example, if you decide you'll need Rs 2,50,000 per year in retirement, and you expect to live upto 90 years, then at;

Age of 50 - your FIN is 2,50,000* 40 = RS 1,00,00,000/- only.

Age of 60 - your FIN is 2,50,000* 30 = RS   75,00,000/- only.

Age of 70 - your FIN is 2,50,000 * 20 = RS  50,00,000/- only.

Age of 80 - your FIN is 2,50,000 * 10 = RS  25,00,000/- only.

At age of eighty you will still earn Rs 5,00,000 as annual income as rental or interest without touching your principle. Your capital will go on multiplying because savings / rental income / interest will be more than inflation.

Think. It is never too late to live. I 'retired' at the age of 42, when i no longer have to work to feed myself, my family or my guests.

In the end what matters is you. Have you lived the life you wanted to live. do it now.

Kapil Dev