Story of a Wasted Retirement Life
I have many friends who invested their entire life’s earnings into starting their own businesses and ended up facing significant challenges. One such example is my friend Abdul Khader, who lived with me in Jeddah for ten years. (To maintain the privacy of my friend, the name, place and photo given here are not real.) Abdul Khader moved to Saudi Arabia in the early 1970s when he was just 21 years old. When we met in Jeddah in 1996, he was 46. After 33 years of working abroad, he returned to India in 2003, having already arranged his daughter’s marriage. His daughter lived in England with her husband, and his son, after completing nursing, secured a job at a government hospital in Riyadh.
When his wife was left alone in a big house, Abdul Khader decided to return home. Along with a substantial amount from his company as retirement benefit, he also had a significant sum saved over the years. Not wanting to sit idle at home, he started a construction materials shop in his town. By 2007, when I visited him to invite him to my son’s wedding, his shop was the busiest in town.
When I visited him again in June 2024, the business landscape had changed. Several modern showrooms selling the same materials had emerged, and his shop was no longer as profitable. On top of this, Abdul Khader faced several health issues. He underwent hernia surgery twice and later had open-heart surgery due to heart-related problems. His wife is also battling cancer.
Despite these challenges, Abdul Khader still opens his shop every day at 9:30 AM and stays until 8:30 PM, personally managing the cash counter. He now realizes that his prolonged hours sitting at the shop have contributed to his health issues. At home, his wife also laments that they hardly get any time together. Invitations to weddings and social events often go unattended because Abdul Khader cannot leave the shop.
When I asked him why he does not retire and rest at home, especially at 76 years old, his response was revealing. After his surgeries, he tried resting at home but found that kind of life unsuitable for him. “It’s all about mindset,” I told him, but he only smiled in response.
The High Price of Risky Ventures
Our country is full of stories of people who, after years of hard work, lost everything in risky ventures. Many remember the tragic case of Sajan from Anthoor, who invested millions to build a convention center, only to be denied permission to operate it. Unable to cope with the loss, he took his own life in that very building.
Similarly, Rajmohan, a retired soldier from Thiruvarppu in Kottayam, who had earned distinguished service medals, fell into a similar trap. In a moment of weakness, he decided to become a private bus owner. When disputes with his employees led to a strike, he was assaulted even when he was under police protection—a scene many of us saw on television.
There are countless stories of retirees who lost their life savings by entrusting them to unreliable cooperative banks or shady financial institutions, only to be left helpless when severe health issues and need of money arose. I know a neighbor who entrusted all his savings to a businessman and relied on the monthly interest for his livelihood. When the COVID-19 pandemic struck, the business collapsed, leaving him penniless. Unable to recover his money and burdened by debts, he, too, took his own life.
Smart Planning for a Secure Future
Listening to such stories, I often wonder why people put their hard-earned money at risk. There are legitimate financial solutions that ensure safety and steady returns, such as retirement pension plans offered by insurance companies regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
When Abdul Khader returned from Saudi Arabia, these options were not widely available. However, today, there is no shortage of reliable opportunities. Major insurance companies like LIC, SBI Life, HDFC Life, ICICI Prudential, TATA AIA, and Aditya Birla offer a range of pension plans to secure one’s retirement.
For example, a 55-year-old individual and his 50-year-old spouse can invest ₹1 crore in HDFC Life’s “Click to Protect Super” plan and receive a monthly pension of ₹46,848 starting the following month. If they prefer annual payouts, they will receive ₹5,85,595 per year. Delaying the pension by 5 years increases the monthly amount to ₹64,033 or an annual pension of ₹8,00,415. If they wait 10 years, the monthly pension rises to ₹86,335, and the annual payout becomes ₹10,79,190.
In the event of the husband’s death, the wife will continue receiving the pension. Upon her passing, the original ₹1 crore investment will be transferred to their nominated beneficiary. This plan ensures both a steady pension during retirement and a financial legacy for the next generation.
Living a Stress-Free Retirement
Old age often brings physical decline and health issues, but it does not have to mean living a life full of hardship. With proper financial planning, one can enjoy leisure activities, spend quality time with loved ones, and travel the world. A well-structured retirement plan allows you to live comfortably and face the inevitable stages of life with dignity and peace of mind.
There are various pension plans available under HDFC Life, and as a licensed Financial Consultant, I can provide accurate information and guidance. For further details, feel free to contact me at +91 79072 28608.