Vishal Kapoor, CEO of Bandhan Mutual Fund, emphasised on the importance of right time for retirement planning, at Outlook Money’s 40After40 Retirement Expo in Mumbai.
He shared key insights from recent research and raised concerns about the delay people often experience in taking action, often due to inertia rather than financial constraints. He added that a significant number of individuals regret not starting their retirement planning earlier.
Read more: https://www.outlookmoney.com/retirement/plan/financial-planning/outlook-money-40after40-90-of-indians-regret-not-having-started-early-says-vishal-kapoor-of-bhandhan-mf
He shared key insights from recent research and raised concerns about the delay people often experience in taking action, often due to inertia rather than financial constraints. He added that a significant number of individuals regret not starting their retirement planning earlier.
Read more: https://www.outlookmoney.com/retirement/plan/financial-planning/outlook-money-40after40-90-of-indians-regret-not-having-started-early-says-vishal-kapoor-of-bhandhan-mf
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LearningTranscript
00:00So that was a fantastic presentation and lots of insights about how people are behaving
00:13and also it kind of shows that, you know, retirement preparedness, which we have been
00:19talking about, it's really low and the good part of course, what I saw was that, you know,
00:25more people are wanting to go on that path like you were mentioning, but where it goes
00:31and how it goes is a big question and my question, the first question that I'll ask you is about
00:38that also, that a lot of people say they have started planning for retirement, but there
00:44are a few who actually know what to do about it, where to invest, you know, how much they
00:51need and other details that are critical for making a proper retirement corpus.
00:58So what should, what is the way forward for them?
01:01Right.
01:02So thanks, thanks Nidhi, thanks for the opportunity as well to present some of our findings.
01:09And the point you've raised is very real, I think, you know, that comes out loud and clear,
01:14that there is an intent, but somehow we are procrastinating, we are pushing it to tomorrow,
01:19and you know, some of us are admitting, actually I don't know where to go, and that's just
01:24out there.
01:26I think, you know, if we resolve to do it today, I think there is enough opportunity, you know,
01:34in this hall for us to get started.
01:37I would think that this is not something which, along with my profession, I can hope to do as
01:45good a job off as I think.
01:49And therefore, this is definitely an area I would get professional advice on.
01:55Not that, you know, some of us may feel that, no, no, it's not very difficult, I can do
01:59it on my own.
02:01But a one or two percent difference over a long period of time can actually add so much
02:05more wealth to my corpus, or growth to my corpus, that it's often unbelievable.
02:13And if you can get someone who, you know, who you have trust in, and you know, is a professional,
02:20is regulated, I would think that is probably the best way to go.
02:25Because someone who will be able to guide you through this labyrinth of financial terms,
02:31whether it's term insurance, or SWP, and you know, hybrid funds, and things of the other.
02:38And you know, keep it simple for you, tell you this is the corpus that you should aim for,
02:43handhold you to make sure you get there, and then be able to sort of use it, or help you
02:48use it in your retirement years.
02:50I think that can be done by a professional, so I would highly encourage that seek out and
02:55get a professional.
02:56So, in fact, I noticed another thing that, you know, the number of people who are going to
03:01advisors, whether it's bank officials or distributors, there's a large ecosystem right now, it's
03:08not just RIAs, has slightly increased over the people who only depend on family and friends.
03:15So do you think this will, you know, move in the right direction?
03:20No, so I think it's very heartening to see that it's already moving in the right direction.
03:26Because, like I mentioned in the earlier research, we used to see a lot more of us dependent on,
03:30you know, our family members or friends to guide us through this.
03:36And clearly technology has played a part.
03:38So it's not just access to individuals or bank officials or other financial experts, but even
03:45online today.
03:46There are beautiful tools one can go through.
03:50Pretty much most mutual fund or insurance companies, their own sites will show you or
03:56give you enough tools to be able to plan for a copper, see how you can deploy it, play around
04:00with the numbers, see what missing out on a few years means, etc.
04:05So I would encourage that that's a great trend, there is more awareness, there is more knowledge,
04:11but a lot more to be done.
04:13And this is something I hope continues in this direction.
04:15Right.
04:16And also the element of caution in terms of, you know, there may be a lot available on the
04:22internet which may not be genuine or may mislead people.
04:27No, and very important point because I think sometimes, you know, it's sad to see that, you
04:34know, an entertaining video, it should really be entertainment gets messed up or it's looked
04:41at like financial advice.
04:44So please be cautious of this.
04:46We do see in the industry a lot of very interesting numbers, almost unreal numbers coming out of
04:52people who look like experts.
04:54But you know, you have to be careful about who you are listening to, what you are doing.
04:59I would prefer that, please go to regulated entities and everything on the internet is
05:04not regulated.
05:05So keep that in mind.
05:07And you know, the one saying in financial markets is that, if it looks too good to be true,
05:13it probably is.
05:14Yes.
05:15So…
05:16Right.
05:17Absolutely.
05:18So one more question to you, Mr. Kapoor, is, you know, we all kind of say, all the experts
05:24say that you should start early and so that you have the time to build up the corpus.
05:31But the report also shows that, you know, most people start late actually.
05:36So how does this cohort, and we have a lot of people from this cohort today, deal with
05:42the situation?
05:43I mean, because there is a large possibility that they may lose hope.
05:47Yeah, so certainly I think within this cohort, I hope no one is losing hope, you know, I don't
05:56think this is something that is, that can get worse, it can only get better.
06:01So to that extent, just in case you have not started, start today.
06:07For everyone in this room, right, I don't think there is any other real way to get out
06:14of this, because the earlier you start, the earlier, the more conscious you become, the
06:18better your chance of really enjoying your golden years.
06:22Like we've discussed, there are some pitfalls on the way.
06:25So the more aware we are of pitfalls, hopefully we have a better chance of avoiding them.
06:30And that's all I think we should try and do, which is where I think that instead of
06:34trying to do it all ourselves, you know, going to experts who are regulated, who have
06:40a sense of responsibility, finding out some information ourselves, probably gives us the
06:45best chance of success.
06:46Right.
06:47Thank you so much.
06:48And on that note that, you know, it's not the time to lose hope, even if you're late,
06:54any time is a good time to start, right?
06:57Thank you so much, Mr. Kapoor for this conversation and presentation.
07:00My pleasure.