Non-Clinical Support » Personal Finance

Pension For Doctors

By Dr C H Asrani

Overheard my daughters, aged 23 to 26, talking of collecting 200+ lakhs for their retirement and was genuinely shocked, to put it mildly. Here I am 53 and NEVER thought of retiring, leave alone planning for it.

Why me alone? Doctors do not retire! They just fade away - sitting in their clinics beyond decent working hours, either waiting for patients or waiting for a child to return from abroad and take over the reins of their practice; till one day you hear 'Dr XYZ passed away; he was practicing till the last day!'

Did he have a choice?
Alas, No!

We, medicos may excel in our field of work but lack planning - absolutely and totally! We pride our selves by claiming we take life as it comes but as a result are never ready for important life situations/ events/ mishaps. The best revenue earning period of doctors is between 3^rd & 20^th yr of medical practice, the time they can ACTUALLY save for future but talk of planning and a doctor - no way!

Why we don't consider retiring?
Is it because we consider ourselves invincible? Or is it because we never heard a doctor retiring and we don't want to be the first?

Let me put it this way:
Do not consider retirement. Even I would say a doctor is too valuable a member of the society and should keep healing; but he still has a life, family and needs of his own.

Consider the following questions?

• Why should a 60 yr old doctor (practicing for 30+ years) still have to work for earning enough to survive?
• Why should such a doctor not be able to cut down his working hours and afford taking life easy?
• Why should he not pursue a hobby?
• Why should he have to worry to fight rising inflation?
• Will he be able to sustain himself, should a incapacitating illness strike?

And what advantages, if you PLAN for retirement (initially continue working at 30%-50% of your present practice, slowly going into full retirement or practicing for love of practice that will still give you some revenue and all the respect/ gratitude that comes with it):

1. look forward to a far more active retirement ready to enjoy the new age of leisure
2. Pursue your favourite pastimes on a greater scale than time may have permitted during working life.
3. Ability to maintain / even better the standard/ quality of life you are used to.
4. It may also open the door to new experiences with a far wider choice of activities now on offer and the chance to travel to many interesting new destinations.

So the 'Sawaal ek crore ka?' How does one plan for retirement?
Zaavab Do crore ka: by investing in a good PENSION plan!

What is Pension?
The common use of the term pension is to describe the payment a person receives upon retirement, usually under pre-determined legal and/or contractual terms. It is steady income given to a person. Earlier, pensions were typically payments made in the form of a guaranteed annuity to a retired or disabled employee. Now even self employed or those with small businesses can plan for decent pension.

Over last decade, especially after opening up of insurance sector, pension products and pension legislation have grown progressively more complex. For doctors, who are already at sea about finances, the maze of options, taxation, tax implications and legal pitfalls is bewildering.

This is where IDG will help you out. Our fortnightly write-ups specifically written for doctors will make you understand pension better and convince you about giving a serious thought to retirement planning.

If you belong those select few who are already contemplating retirement planning, please drop in a line at retirement@indiandoctorsguide.com for some personalized inputs and guidance.