What Gen Z & even millennials don’t think about enough is that the retirement age is dropping fast due to technological progress & life expectancy going up due to medical progress. In 20 years, retirement could be at 50 & life expectancy at 80. How do you fund the 30 years?

If climate change doesn’t kill us all, retirement crisis will probably be the biggest problem for most countries 25 years from now. Earlier generations got lucky with long-term real estate & equity bull markets that helped create a retirement corpus. Unlikely in the future.

So,

1. Stop getting triggered by everyone trying to lend & stop borrowing to buy things you don’t need or depreciate in value.

2. Start saving early. Diversify across FDs/G-Secs & SIPs of Index funds/ETFs. Stocks are probably still the best bet to beat inflation long term.

3. Get a comprehensive health insurance policy for yourself & everyone in the family. One health incident is enough to push most people into financial ruin or set them back many years financially. Jobs don’t last forever, hence one policy outside of what is provided at work.

4. If you have dependents, they should be covered if something happens to you. Buy a term policy with adequate cover. In the worst case, this money in a bank FD should cover their financial needs.

But the biggest fix for most people is that they should stop taking loans!

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