Message: Return type of CI_Session_null_driver::open($save_path, $name) should either be compatible with SessionHandlerInterface::open(string $path, string $name): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::close() should either be compatible with SessionHandlerInterface::close(): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::read($session_id) should either be compatible with SessionHandlerInterface::read(string $id): string|false, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::write($session_id, $session_data) should either be compatible with SessionHandlerInterface::write(string $id, string $data): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::destroy($session_id) should either be compatible with SessionHandlerInterface::destroy(string $id): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::gc($maxlifetime) should either be compatible with SessionHandlerInterface::gc(int $max_lifetime): int|false, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
NRIPage | Articles | The Three-Bucket Strategy: A Smart Way to Plan for a Secure Retirement | Get Money, Finance & Investment Tips. Master Money Management & Smart Investments - NRI Page
Retirement Planning: More Than Just Accumulating Wealth
Retirement isn’t just about saving money, but ensuring it lasts through the years, considering inflation, medical expenses, and market fluctuations. A 2024 survey revealed that 68% of Indians aged 45-60 feel financially unprepared for retirement. The key to a secure retirement lies in managing investments wisely.
The Reality of Retirement in India
A large number of retirees in India face financial strain due to unexpected healthcare costs. According to a 2024 Max Bupa report, 60% of retirees face such financial challenges. Therefore, it’s essential to adopt a well-balanced investment strategy to secure retirement without depending on family support.
The Three-Bucket Strategy Explained
The Three-Bucket Strategy divides retirement savings into three categories:
Short-term bucket: Focuses on immediate liquidity for basic living expenses. Investments are low-risk, like debt funds or fixed deposits.
Medium-term bucket: Aims for growth over 5-10 years, using hybrid funds to balance stability and growth.
Long-term bucket: Focuses on wealth accumulation over 10-20 years, investing primarily in equities for high growth potential.
Equity Investments for Long-Term Growth
The long-term bucket, with investments in equities, can provide returns of 12-15% annually, making it crucial for wealth accumulation. Despite short-term volatility, equities generally offer high returns in the long run, ensuring that retirees have a growing corpus throughout their retirement years.
The Role of Health Insurance
With healthcare inflation rising at 18% annually in India, retirees need comprehensive health insurance to manage rising medical expenses. It’s advised to port employer-sponsored health insurance to individual plans and consider super top-up plans for larger coverage at lower premiums.
Why the Three-Bucket Strategy Works
This strategy ensures that retirees have sufficient funds for immediate needs, growth to keep pace with inflation, and long-term wealth to support their lifestyle. By reducing reliance on family and balancing risk, the strategy helps retirees manage their finances and avoid financial strain.
Successful Retirement: Saving Wisely
Retirement is about more than just saving money—it's about making your money work for you. By following the Three-Bucket Strategy, retirees can confidently navigate their golden years, enjoying a secure and fulfilling retirement without the worry of running out of money.
