My nephews, who are in their early 30s now, have been saying for years that their plan is to make a lot of money as fast as they can so that they can retire at the age of 40. This mantra has been repeated for years, when they were teenagers, and, predictably, their grand plans were heard by their parents and aunt with varying degrees of scepticism. This was, in part, by their profligate ways that seemed to ensure that this would remain a pipe dream.
However, several years down the line, their confidence in their ability to realise their ambition does not seem misplaced. They have forged ahead in their careers and are earning salaries that the older generation finds ridiculously generous.
Welcome to the world of Fire — an online movement which is an acronym for Financial Independence, Retire Early. Many young Indians have been inspired by this idea and are working steadily towards achieving their goal of financial independence despite the difficulties involved, living as they do in a country ranked lowest in a global retirement index of 43 countries that took into account factors such as saving avenues, health care, etc. There is even a Fire India forum on Reddit to exchange tips on personal finance.
As I interact with more and more millennials, I am amazed by their foresight and their appetite for risk. Their parents, mostly working in safe government jobs, expected to retire at the age of 60 and then live on their pension. But this younger generation is mindful of the present-day scenario, with the fear of layoffs and stagnation at the middle management level. They are being proactive by investing aggressively and saving, and many are managing this without winning a lottery or waiting for an inheritance.
Retirement, for them, doesn’t mean sitting idle at home. This will be the time to pursue their passions, which have taken a back seat as they focus on their jobs that entail long hours and very little time to spend on what they love doing. So, it could be travel, with no worries about having to get back to the office after too short a holiday. Or, maybe, they can sit the whole day playing their favourite computer games without having to watch the clock. Having the freedom to do what one loves doing without having to worry about the consequences is bliss.
Many young couples are assiduously working towards realising their goal by eating out less often and not spending frivolously without a thought for the future. They are also mindful of rising inflation rates.
I remember a friend who came to the land of dreams, Dubai, in his 20s. He had a clear goal in mind — to save enough to be able to hang up his boots whenever he wanted to. While the rest of us splurged, he lived frugally, opting to stay in a shared accommodation while the rest of us moved house often, seeking greener pastures in the form of a more upmarket neighbourhood or a more spacious apartment. When he felt reasonably secure financially, he moved into a flat and then there was no looking back. He began to indulge in a few luxuries such as his dream car and travel to exotic locations. By the time he reached his 40s, he was ready for retirement. He had saved a good amount and acquired several properties.
This determination and single-minded purpose is admirable and I am happy to see these qualities in the younger set, who are living life on their terms, not wanting to wait till they are in their 60s to do all the things they love to do.
They will certainly not appreciate the classic Beatles song When I’m Sixty-four.
Vanaja Rao is a freelance writer based in Hyderabad, India.
