Early salary hikes in career leads to early retirement
By
siliconindia | Monday, 17 January 2011, 14:43 IST

Bangalore: Getting retired as early as in one's 30's has become the corporate fashion. Financial security, professional fatigue or burnout and early peaking in career are possibilities for executives to move towards early retirement. A lot also depends on how individual perceives his future advancement opportunity in the company.
Salary Guide, 2006, brought out by Kelly Services India shows, India had the highest average salary increase at 13.9 percent, and employees from the InfoTech industry received the highest increase across all five groups surveyed, at 17.9 percent. Even during the slowdown the average salary increments in India were in the range of 10-15 percent across industries. The growth is even more pronounced in 2010, when domestic firms were bullish about increments to retain talent.
One of the company's Chief Executive Officers who took an early retirement said that he is not getting away from work or taking rest. It's just that he's making more out of his life and following his passion. There are many others who are planning for early retirement due to several reasons like spending more quality time with their family and so on.
Clearly, the growth that the country has experienced is leading to higher salaries and quicker career upscale, fuelling the plans for early retirement. Even the management people at different banks agree to the fact that that nearly a fifth of the policies they sell are sold in the retirement and pension policies segment.
According to a survey by Max New York Life (MNYL), 65 percent of the respondents considered retirement planning as their single biggest need. "Our sales data shows that the average age of people buying retirement or pension plans has come down from 38 in 2008 to 33 in 2010," says Anisha Motwani, Chief Marketing Officer of an insurance firm.