Zerodha CEO Nithin Kamath on 4 things to do to prevent retirement crisis

While earlier generations got lucky with long-term real estate and equity bull markets that helped create a retirement corpus, he said it is unlikely to repeat in the future.

“What Gen Z & even millennials don’t think about enough is that the retirement age is dropping fast due to technological progress & life expectancy going up due to medical progress.

In 20 years, retirement could be at 50 & life expectancy at 80. How do you fund the 30 years?,” he said on Twitter.

In a thread, he offered a four-point solution that can help youngsters plan their financial future:
1) Stop getting triggered by everyone trying to lend & stop borrowing to buy things you don’t need or depreciate in value.

2) Start saving early. Diversify across FDs/G-Secs & SIPs of Index funds/ETFs. Stocks are probably still the best bet to beat inflation long term.

3) Get a comprehensive 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 many years financially. Jobs don’t last forever, hence one policy outside of what is provided at work.

4) If you have dependents, they should be covered if something happens to you. Buy a term policy with adequate cover. In the worst case, this money in a bank FD should cover their financial needs.

But the biggest fix for most people, he said, is that they should stop taking loans.