When is the Best Age for Retirement in India?

Retirement is an important situation that must be taken seriously from an early age. To determine the best retirement age, consider your financial situation, health, lifestyle, family commitments, and other important aspects.

Moreover, factors such as your expected lifespan, social security benefits, pension plans, and other income sources need to be considered while making this decision. By understanding these aspects, you can make a proper decision about the best retirement age suitable for you.

Early retirement is when you plan to disassociate yourself from the complexities of work pressure before the prescribed retirement age set by your workplace.

It is usually planned for achieving specific goals, medical issues, or due to someone's unwillingness to work further. For example, retirement in your early 60s can be considered early retirement, as you are fit to work more years even then. Moreover, the age between 60 to 65 is also the average age for retirement in India, as most people choose to retire during this time.

However, before choosing your ideal retirement age, it is also important to consider the advantages and disadvantages it can cause in your lifestyle and financial goals.

1. Invest in a New Career/Business

2. Good for Health

3. Opportunity to Travel Freely

1. Difficulty in Maintaining a Lifestyle

2. Saving Needs to Last Longer

3. Possibility of Declining Mental Health

1. Savings Are High

2. No Outstanding Debt

3. No Dependent Children

4. Health Insurance Coverage

Late retirement is when you work for extra years, even after crossing your ideal retirement age set by the respective company.

As you already know, the average retirement age in India is 60 to 65 years, and any retirement after these years would be considered late retirement. Hence, retirement in someone's early 70s or working even after retirement period is considered late retirement age.

There are plenty of reasons why an individual might choose late retirement, including financial insecurity, no medical corpus, being debt-ridden, etc. Other than this, some people choose late retirement due to their love for work or to get rid of boredom. However, before considering late retirement, understand the advantages and disadvantages it can cause in your lifestyle and financial goals.

1. More Time to Save Money

2. Save a Lot on Taxes

Senior citizens till the age of 80 years have to pay zero tax on their annual income of ₹3 Lakhs. Regular citizens above 60 need to pay zero tax only up to an annual income of ₹2.5 Lakhs. Hence, if you are working even after your normal retirement age, you can save a lot on taxes.

3. Better Lifestyle

As you continue to work even after your normal retirement age and make a constant earning, you can maintain a better lifestyle. This is because, with time, you earn more and therefore accumulate more funds to live a comfortable life in your old age. In addition, you can lead a stress-free life as there will be a constant inflow of funds to save you during any emergencies.

1. Less Time to Enjoy Retirement

2. No Time to Pursue Dreams

3. No Time to Travel Freely

Retirement is a crucial life decision, and one needs to ensure that he/she can manage their finances properly after the income flow suddenly stops. Nevertheless, there is no best age to retire. Early retirement can come before or after 50 years.

Before taking this life-changing decision, you need to look for some significant determining factors of retirement, as mentioned below:

Physical & Emotional Burnout

Financial Goals of Family

Career Goals

You may have professional goals in your life, especially in reaching the executive positions of your organisations.

If you have reached your desired position early in your career and served in that role for a long year, you may retire early. After retiring early, you can also explore other opportunities. For example, you can join as a mentor or consultant in your area of expertise or start a business.

Declining Health Condition

With ageing, health conditions deteriorate gradually. If you see that it is becoming stressful for you to continue your work anymore, you can go for retirement. You can recover your health by taking the required care after retirement.

This is why the best age to retire for health or longevity often comes earlier than the lawful age of superannuation. By retiring early, you will still have physical vigour and mental energy to meet your long-reserved goals in life. Nevertheless, after this decision, you should engage in mental and social activities to stay happy and avoid stress.