Retirement planning is often aimed at a relaxing and carefree life with financial stability. But for some, the situation is not the same. They continue clearing EMIs (equated monthly instalments) deep into their golden years. This makes what could be a worry-free period into a major concern.
With shrinking income and rising costs, it could be difficult for many retired persons to pay their EMIs every month. This is referred to as ‘EMI Retirement’, which could push many people into financial distress in their golden years.
An equated monthly instalment, or EMI, is an easy method of repaying a loan. You pay a fixed sum every month that includes the loan’s interest and principal amount. This ensures the loan is cleared at the end of its term. EMIs are common modes for paying off personal loans, home loans, automobile loans, or education loans.
Monthly instalments simplify the management of debt. However, in the retirement years, it could be a concern.
