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When people retire they face many issues. First of course is how to spend the day? Before there was an office where one had to go and do some work, but after retirement that is gone. But that is not the only shock. The second factor is entirely financial in nature. A job ensured that there was a paycheck at the end of the month. But when someone retires, the insurance of the paycheck is also gone. The irony is that, the costs still remain, and in some cases they actually increase because advanced age means that there would be more medical expenses. Thus it becomes necessary to invest for retirement to ensure that there is a steady inflow of income even when the paycheck stops arriving.

Of course when you retire you will receive a lump sum of money which if invested wisely will lead to a steady inflow as interest payments. But that may not be enough. That is why most people plan an investment strategy when they are in their 30's to give these investments around 25 to 30 years of time. Such long term investments in almost all cases lead to a hefty amount on maturity. And only such a plan can ensure that an individual will have enough money when the person no longer has an office to go. At least this was the traditional way of though, till things started to change a few years back.

Now there are many who do not think for that long. They live a fast life, spend good money and earn even more. They dread having to work till their bosses tell them... 'sorry, you are too old for us, you gotta go'. Their philosophy of life is work round the clock for 10 to 15 years, earn in millions and call it a day when you have more than enough. Retirement investment for them is not an option. If they had some extra money, they would actually think of rolling it back to earn a profit tomorrow, and then rolling it again, and not getting it back on retirement.

While this school of thought is slowly picking up, but for a vast majority, planning retirement investment is still important.

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