PFRDA

Features of Retirement Goals

No loans for Retirement- Unlike most other goals which can be funded through loans, retirement has to be funded out of the resources that are created from one’s income in earning years. This feature of the retirement goal describes why it has to be given the highest priority in allocating savings.
Starting early and saving regularly - The retirement goal is inherently a long-term goal. Typically, retirement would be seen around 25 years to 30 years after the start of employment or earning a living.
Only savings do not suffice- Just saving money won’t help. The savings have to be invested to create assets till retirement. These assets may be financial assets such as investments in debt and equity oriented instruments, and physical assets such as real estate and gold. On retirement, these assets are used to generate the streams of income that are necessary to meet expenses.