CEO Speak May 2025

Time is the greatest asset when it comes to retirement planning.

However, I still see many young investors at the start of their career having the mindset of “I will start saving when I earn more”. Even after that they start making their investments with the financials goals of home buying or children’s education. Rightly so and I understand the need. Eventually what happens is that they wake up to the fact that they need to start planning and saving for their retirement when their children grow up and off to college which may be around the age 50. Starting to save up for retirement with possibly about 10 years as an investment horizon post which ones requirement will be to have an incoming cash flow not only puts stress on the individual but also on the investment as the investor may not have sufficient time to build a healthy retirement corpus.

Retire Smart: Busting Myths and Building Wealth with long term SIPs

Common misconceptions people have about retirement planning.

1. “I will not have many responsibilities post-retirement”
   Reality: Your lifestyle needs will continue. Medical expenses increase with age and that becomes a large part of your expenses. Planning in advance helps you mitigate the risks.
2. “I have EPF/NPS — that should be enough.”
   Reality: While EPF or NPS are great tools, they often aren't sufficient alone to cover 20–30 years of retirement, especially with rising healthcare costs and inflation. You need a diversified retirement strategy.
3. “Retirement is too far away. I have time.”
   Reality: The longer your investment horizon, the smaller the amount you need to invest regularly. Time is your greatest ally — delaying by even 5–10 years can significantly reduce your corpus.
4. “I’ll get a pension or rental income.”
   Reality: Depending solely on fixed income in a world where inflation continues to rise is risky. Your investments need to outpace inflation to maintain your purchasing power.
5. “I’ll sell some assets when I retire.”
   Reality: Counting on selling property or gold later can backfire. Liquidity issues, taxes, or market conditions may affect your plans. It’s better to have a stable, planned investment portfolio.
6. “I will save enough before retirement without planning”
   Reality: Inflation is the silent killer of savings. Without a structured retirement plan, you may underestimate how much you'll truly need. Living and healthcare expenses are all subject to inflation, so we must provision our savings accordingly. Don’t let inflation derail your retirement.

SIPs (Systematic investment plans) is a smart way to build your retirement corpus.

1. Power of Compounding:
   SIPs help you benefit from compounding. Starting early allows this compounding effect to work for longer, leading to reasonable growth.
2. Rupee Cost Averaging:
   SIPs smooth out market volatility by investing a fixed amount regularly. This means you buy more units when prices are low and fewer when high, reducing average cost over time.
3. Discipline Without Stress:
   SIPs automate your savings, making investing a habit without having to time the market or make large lump-sum decisions.
4. Aims for Inflation-Beating Returns:
   Equity-oriented mutual funds through SIPs have historically delivered inflation-beating returns over the long term.
5. Flexibility and Accessibility:
   You can start SIPs with a very nominal amount As your income grows, you can increase the amount easily, adjusting your plan to match your financial goals.

Retirement should not restrict you. It is the time you must have a full financial freedom to do the things that you have always wanted to do but have been putting your desires on the back burner for taking care of your responsibilities. Start planning for your retirement corpus as you plan for everything else in life.

Happy Investing and Stay Invested.

Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empanelled distributors/agents are forbidden from guaranteeing/promising/assuring/predicting any returns or future performances of the schemes of HSBC Mutual Fund. Hence please do not rely upon any such statements/commitments. If you come across any such practices, please register a complaint via email at investor.line@mutualfunds.hsbc.co.in.

Views provided above are based on information in public domain and subject to change. Investors are requested to consult their financial advisor for any investment decisions.

Source: HSBC MF

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