A risky misstep: Prioritising near-term goals over retirement savings

Too many loans can diminish your ability to save; spending lavishly on children's weddings can also hurt

While the majority of Indians are financially ill-prepared for retirement, many don’t even realise the seriousness of the issue. Only 20 per cent of respondents in a recent survey by HDFC Pension, which covered 1,801 participants, felt that serious retirement planning should begin before 30. On average, those surveyed also felt that a retirement corpus of Rs 1.3 crore (less than 10 times their current annual household income in many cases) would suffice. 

Current needs often act as barriers to retirement planning. Says Jinal Mehta, certified financial planner, Beyond Learning Finance: “A major part of most people’s income goes towards