‘Early retirement also has a flip side…’: Retd Dy. Chief Labour Commissioner Subrata Chakrabarti

Retirement planning is one of the biggest financial decisions one makes in life. It has a set of challenges and if you don't get your finances right with smart planning and consistency, you are unlikely to achieve your retirement goal. When planning for retirement, one has a number of questions including: Where to put money? How much and for how long?

Who better to answer these questions than those who are experienced?

In a series on retirement planning, MintGenie interviews a retired senior citizen every week to explore how they planned their retirement, the investments that worked for them, the ones that did not, the advice they have for the younger generations and much more.

This week we've interviewed Subrata Chakrabarti, Dy. Chief Labour Commissioner & Welfare Commissioner (Retd.), Guwahati, to know how he planned his retirement and learn some lessons.

According to him, one should consider their liability for dependents, purchase of house if not done earlier, medical expenses and a decent monthly income for a healthy life style while planning retirement.

Edited Excerpts:

How did you plan your retirement and did you follow that plan?

Retirement plans of those working in government sector and those in private sector are quite different because of superannuation pension. However, being a retired central government employee, I have enrolled in some LIC pension scheme, which is giving me fixed monthly income along with some other monthly income schemes, etc. By and large I try to follow my plan.

What were the investments you made?

Investments were made in some central government sponsored RBI bonds along with monthly income schemes in post office, HDFC Life scheme, schemes meant for senior citizen in nationalised bank and a portion put in some SIP/STPs in reputed companies.

In your view, what works best for retirement and what doesn't ?

Early retirement comes with a scope for commencing a new career, travelling abundantly or fulfilling any other long cherished wish that could not be achieved during early stage of life like starting business venture. On the flip side, premature retirement causes strain on savings due to cost-push inflation, smaller social security benefits and a depressing effect on mental health, etc.

Did you achieve your retirement goal?

By and large I am able to achieve my retirement goal.

According to you, what are the most important factors to consider when planning retirement?

One should consider his or her liability for dependents, purchase of house, if not done earlier, medical expenses and a decent monthly income for a healthy life style.

Any advice for GenZ for early retirement?

Early retirement can be thought of if someone has planned his future meticulously. Otherwise, it is not advisable to get VRS.