I wanted to say ‘mera pension ka pitara’ – but decided that hamper is a better word. Hamper meaning a box of gifts as well as ‘what I did to hamper my pension accumulation’ – in both usages!

Well I keep writing about pension – and have more or less been anti pension plan, EXCEPT if it is from a mutual fund. Of course I am for a pension strategy, but against buying ONE pension plan and believe that your old age has been taken care of.

I remember going to school once – and was very excited about what I was EXPECTING for lunch. So here I was whistling while picking up my lunch box, went with an extra spring in my step I went and opened the box – and found something else……….eeeeeeeeekkkkkkkk I shrieked. Of course the disappointment was there, but for a short while. I went home and ate what I was planning to have for lunch. Disappointment time frame? 4 hours? Learning? Patience.

However when you are 58 and open your ‘Pension hamper’ and you find that there is just not enough money to retire, what will you do? Ask your self this question, regularly.

What should be there in your pension box?

An equity bucket (2-3 funds), A balanced fund (2 schemes) , Income fund (1 scheme)

Rental property, PPF, PF,  Bank fixed deposits, Post office schemes – schedules, cash of course…..

Obviously as your age increases you shift from equities to debt – in a systematic manner.

Now if you do not do this, but instead you buy a pension plan for x amount, …and ‘hope’ that it performs according to YOUR EXPECTATIONS……well you are hoping….that HOPE is a good STRATEGY.

So immaterial of your age do not ‘buy’ a pension plan, create a pension hamper. Be careful what you put into it. I know one person who has created a ‘pension travel plan’, ‘pension white goods plan’, ‘pension house buying/repair plan’…then your medical insurance plan, sadly in India we still do not have a long term care plan, ….so go out there and create it. It cannot be bought, HAS TO BE CREATED.