The Gen X and Y Conundrum

For the longest time (pre 1990), job options were limited in India. Most people worked in the government sector & a few in the private sector. People spent their entire lifetime in one job before they retired. Business options were limited to a select few who either had the capital or were daring to venture out on their own.

Post liberalization, in the last 30 years, the face of the economy has changed. Today, there are umpteen jobs & opportunities for people. The services sector is booming. #Middleclass has experienced an upward revision in their income, lifestyle & aspirations. Yet #GenX (born mid 1960s-1980s), many of the #GenY (born 1981-94) professionals could be heading towards financial uncertainty for 2 reasons.

1. Typically employed in the private sector, they won’t enjoy the pension benefits their parents did
2. There is a growing gap between increased life expectancy and reducing retirement age in corporates (mostly under 60)

To prepare for this proper financial planning, & actively preparing for work options (such as a side gig or freelancing) post retirement is pivotal. Anything less could mean a majority of them may need to substantially dial down their lifestyle and potentially face hardships.