After retirement, should I protect my capital or protect its purchasing power?

The more important question is not only whether your rupee is protected, but what that rupee will be able to buy in the future.

Retirement can last 20–25 years or even longer. During that period, the two clear uncertainties are how long you will live and what the cost of living will be.

If you focus only on safeguarding the capital, you may start unnecessarily cutting down your lifestyle because you are worried that there is no salary coming in anymore.

The objective should be to remain prepared to meet your requirements as you move forward in life without unnecessarily reducing your lifestyle or becoming dependent on your children.

“I think it is more to do with protecting what the rupee can buy. That’s more critical.”

“Am I going to be able to live through the entire period of my time the way I want to live, without any decrease in my lifestyle and without being dependent on my children?”

This question and answer is derived from the podcast between Ravi and Sachin. See the full podcast here.

This is not personalized investment advice. Your financial situation, goals and constraints may be different, so assess your own situation and discuss it with your financial advisor.