Early retirement- is it really necessary??

Hello friends,

As you know, samanyabuddhi.blogspot.com is the place to use the common sense (which is not so common :-P) to grow health, wealth & happiness.

Health, wealth and happiness are the the pillars that support a meaningful life. These pillars depend on each other to support the human life. If one is weak, others can not support a healthy life.

Today I am thinking about the wealth side of our life.

Wealth can be defined as anything that is needed by someone..

For example, insect also have wealth, a spiderweb is needed for a spider to catch it's pray. Birds build nest for their little ones. Honeybees make and store honey in the honeycombs. All the things mentioned are needed by someone so can be considered as wealth. These examples also states that wealth can be created.

As far as human beings are concerned, there are many times of wealth a human being can create.

Mostly until our formal education is completed, we consume the wealth created by our parents (we consume our parent's time, food, money, space etc.). After completion of the formal education we start working for some organisation, may it be someone else's or we make our own by consuming more wealth to form the organisation (entrepreneurship), it it can be a self employment. Then we start using our human capital to creat wealth for the organisation. Now after more than 20 years of consuming wealth (only input), For the first time in life we start giving some output.

So our human capital is itself a wealth for the organisation we are working and also to ourselves as we are getting a part of wealth created by us back by the organisation in the form of money.

Money is not actually wealth, it is a medium to move wealth.

So with money we get power to purchase what we need, that is we purchase wealth, so money itself becomes synonymous with wealth.

Now coming back to the human capital, suppose we join a job at the age 20 and the retirement age is 60 (we can work more but considering the health, I think it is a reasonable estimate to retire at 60, which is also the official age of retirement for government servants in India). Well, you can choose whatever age you would like. But considering the above scenario, we have 40 years of working human capital at the time of joining an organisation. As the years pass the remaining human capital goes on decreasing, that is at the age of 40, only 20 years of human capital is remains. But in exchange of your working and wealth creation for the organisation, you are getting paid. So the cumulative (that is total till now) payment you received is goes on increasing and the human capital remaining goes on decreasing with time.

If we don't want to retire, and keep working, we can't do that because the human capital we possess is limited. We can't work till we die, because of health issues, aging etc.

So the inevitable fact is we have to retire at some time.

What if we spend all the money we receive in exchange of our human capital? Simple answer is, we will retire broke. Or we can't even retire, we have to search another job, even for low pay.

But mostly people invest some amount of their salary in some pension scheme, to get the pension after retirement. If your retirement fund is big enough then you can have a good retirement life.

Thus saving for our retirement is necessary or compulsory. Our retirement age is fixed by someone else, that is the organisation we are employed in. And we have accepted it and making planning for building retirement corpus before the retirement date.

This retirement is an unavoidable phenomenon. For most, the retirement date is fixed by someone else.

So why not choose our own retirement date and plan for it? We already know how to make provisions for life after retirement..

Think about it for yourself..

See you later.. till then have a nice day..

Sumit,

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