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MONEY TRAP - 16 : Unplanned Retirement

There is a famous saying “Retirement can be a great joy if you can figure out how to spend time without spending money”. Yes, retirement is the time to catch up on all that you have missed in life. Time to see the World. Time to pursue your hobbies. Time to spend with your children and grandchildren. But retirement is great…only if you retire at the right time. If you are among the lucky few who have a lot of money, then you can retire whenever you want. You don’t need to plan for retirement. However, if you do not have the money and still want to enjoy the bliss of an early retirement, you need to give it some serious thought. Do you have the money for an unplanned retirement? Need help with your retirement planning? Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

Why do you want an early retirement?

If you are heading for unplanned retirement, you first must decide why you want to retire. Are you bored of your job? Nobody quits a job they like. Are you opting for the easy way out? Today’s buzzword is instant gratification. You do not have the patience to work for a decade or more, before you retire. You don’t care whether you have the money to retire. You just want to retire. Perhaps you just want to spend time with family?

Retiring early could mean losing a lot of money

You are tired and bored of your job. You just want to say ….goodbye to your boring job. This could mean losing a lot of money. You could be earning a lot of money in your 40’s and 50’s. Are you prepared to forego all this money for an early retirement?

Let us understand what happens if an early retirement goes horribly wrong. Anoop who is 45 years old, works as a manager in a garment store. Anoop gets a handsome pay. Anoop has very high targets which he struggles to achieve. If Anoop doesn’t achieve his targets….well, the boss yells at him. Monsoons are a terrible time…no one comes visiting the store. Getting yelled at is regular in this season. One day after listening to a longer than usual thrashing from his boss, Anoop decides to….well, retire. Anoop was fed up of working. Retirement has got to be the way out of his problems. Anoop would have plenty of time to spend with his wife and son. Anoop was now retired. Everything seemed great. No more early mornings…No more boss yelling at him… Time to spend with his wife, Komal and young son, Anand. Anoop enjoyed retired life for a couple of years. This is when the problems started…. Money started to run out. Komal had to spend long hours in the office, trying to make ends meet. When Komal returned late at night, Anoop was asleep. Anoop and Komal hardly spent any time together. Weekends were mostly spent fighting. Anand was in high school and spent most of his time with friends. Anoop was all alone at home and doing….pretty much nothing. One day after a rather long fight with Komal, Anoop went to find a job. However no Company was willing to hire Anoop. Spending long hours at home had made Anoop fat and lazy. His skills were outdated. Finding no employment, Anoop soon returned home. With money being in short supply, Anoop and his family were stuck in a money trap.

What do you learn from Anoop’s mistake? Anoop never thought of his family when he retired. With no earnings and no sufficient savings, how was he going to feed his family? Anoop was 45 years when he retired. In the next 10 years, Anoop would be at the peak of his career. His earnings would have skyrocketed. Anoop wanted to spend time with his wife and son. Unfortunately his wife was forced to work and his son was always out of home. Anoop should have checked if he had enough money for retirement, rather than make an impulsive decision. The right thing to do would be changing a job, rather than unplanned retirement.

See Also; Best Pension Plans In India

You compromise on financial goals

Life is short. You have limited time to achieve your financial goals. You might want to buy a car, go on a holiday abroad or even buy a second home. Unplanned retirement could force you to compromise on financial goals.

Ajith was holding a good job in an MNC firm, with a very good salary. Life seemed promising for Ajith until one day at the ripe old age of 47…He just retired out of the blue. His friends were shocked. Ajith used to mock his friends saying…“I am enjoying the retired life. Look how hard you are working”. Little did Ajith realize, how soon his life was going to take a turn for the worse. Ajith was diagnosed with a heart ailment and as he did not have a critical illness plan, he had to pay the medical bills from his own pocket. Ajith found his money running out. Ajith was forced to compromise on his financial goals. Goodbye car…. Goodbye second home… Ajith’s son Rakesh was 18 years, when his father retired. After graduation Rakesh wanted to study in the US. Unfortunately, this plan had to be shelved.

What do you learn from Ajith’s mistake? No matter how well you plan for retirement, an unforeseen emergency could mean, you run out of money. If you invest in equity, you could be forced to redeem your equity mutual funds and sell your shares to meet expenses, even if the stock market has crashed. You could be forced to liquidate your fixed deposits to meet an emergency and you lose on the compounding benefit. You will be forced to say goodbye, to your financial goals.


Mr. C.S. Sudheer

Mr. C S Sudheer is the founder and CEO of – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of He aims to build a nation that is financially literate with investment savvy citizens.

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