In recent years, more and more individuals in India are choosing to remain child-free or find themselves without direct heirs, raising important questions about retirement planning. For those without children to lean on, preparing for the later years of life becomes about more than just saving money it’s about securing independence, comfort, and care.
Financial experts, including Ajay Kumar Yadav, Group CEO and CIO at Wise Finserv, and Sameer Mathur, MD and Founder of Roinet Solutions, offer valuable insights into how to plan effectively for retirement without children. Yadav emphasizes the importance of building a retirement corpus that covers at least 20-25 times one’s expected annual expenses. For instance, if you estimate needing Rs 6 lakh a year for comfortable living, aim for a corpus of around Rs 1-1.2 crore.
To ensure steady income throughout retirement, Mathur suggests focusing on guaranteed income assets such as annuities, bonds, and other fixed-income instruments that provide regular cash flows. Annuity plans from LIC or the National Pension System (NPS) are also highly recommended for those without children, offering lifetime income streams. Systematic withdrawal plans (SWPs) from mutual funds can also help address unexpected expenses without depleting the main retirement capital.
Another major concern is healthcare costs, which continue to rise each year. As you won’t have children to assist with doctor visits or manage healthcare needs, planning for these expenses becomes critical. Early investment in a comprehensive health insurance policy is essential, along with building a separate medical fund for additional costs such as home care, nursing, or treatments not covered by insurance. Yadav suggests setting aside 20-25% of your total corpus for medical and elder care.
For long-term care, consider senior living communities that provide not just a place to stay, but also medical support, social activities, and a sense of community. These communities are gaining popularity in India and can offer a backup option for those seeking social connection and medical assistance.
Furthermore, creating a clear legal plan is crucial. Without children to manage your affairs, it's vital to have a well-drafted will and potentially a private trust to ensure that your assets are distributed according to your wishes. Appointing a trusted individual as Power of Attorney to handle finances and decisions on your behalf, as well as having a Living Will or Advance Directive in place for medical decisions, can further safeguard your independence.
Planning for retirement without children is all about foresight. By ensuring financial security, preparing for healthcare needs, and addressing legal matters, you can design a retirement that offers comfort, independence, and peace of mind. With careful planning and the right strategies, it's entirely possible to enjoy your later years with dignity and security, even without the traditional family support system.
