While previous generations had luck with long-term real estate and equity Bulls market that helped create a retirement consortium, which he says is unlikely to happen again in the future.
“What Gen Z and even millennials don’t think about is that retirement age is rapidly decreasing due to technological advancement and life expectancy is increasing due to medical advancements.
In 20 years, retirement could be at 50 and life expectancy at 80. How do you fund 30 years? “, he said on Twitter.
What Generation Z and even younger generations don’t think about is that the retirement age is rapidly decreasing due to technology… https://t.co/MO6SbnGuJt
– Nithin Kamath (@ Nithin0dha) 1667031418000
In one thread, he offers a 4-point solution that can help young people plan their future financially: 1) Stop being agitated by people trying to lend and stop borrowing to buy things you don’t need or depreciate.
2) Start saving early. Diversify on FDs/G-Secs & SIPs of Index funds/ETFs. Stocks are probably still the best bet to beat inflation in the long run.
3) Get holistic 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 financially for years. Jobs don’t last forever, so a policy is outside of what’s offered in the workplace.
4) If you have dependents, they should be covered if something happens to you. Buy a term policy with full coverage. In the worst case, this amount in the bank FD will cover their financial needs.
But the biggest fix for most people, he says, is that they should stop borrowing.
