How Passive Income Helps Your Retirement Life

passive income and retirement planning

Our readers might call back to retirement planning, where we mentioned passive income. Let us all move to the ages nearing retirement. Whatever your age might be, wear the shoes of the retirement phase.

There are three types of people in retirement

1. Retirement with no corpus.

2. Retirement with a few corpus.

3. Retirement with a passive income.

Unfortunately, people who retire with a huge corpus of 5 Cr or more and people with passive income are less than 10%.

Retirement is not meant to quit all kinds of income and enjoying the rest of life. You should be getting cash flow into your corpus even after retirement. It is the period to quit from rat race and following your passion.

Why Should You Retire Early From Job?

JOB is meant to be Just Obey the Boss. You can’t do anything on the job without your boss’s permission.

The boss should be the main person deciding all in terms of your career. You can’t even communicate with your general manager or managing director with your intuitive ideas. It has to route through proper channels.

Almost 50% of the employees are unhappy at their jobs, according to statistics from The other 30% of employees are in a Job for commitment. The other 20% are loving their Job.

So, most people are looking for part-time jobs, side hustles, and startups. Fact says almost 80% of startups don’t have their business for even 5 years.

When to Retire:

Retirement life can be started at any age, including 30, 40, or 50. It is completely dependent on one’s interests.

People try to work till 60 only because they still have commitments.

In the early ages of their careers, they should have missed retirement planning.

The best period to retire is at the age of 45 and follow your dreams or passion.

The only way to retire at the age of 45 is to save 30-50% of your monthly income and invest in an Index fund for 20-25 years (from age 20-45), which will create a huge corpus of nearly 5 crores.

So, at age 45, you can retire, follow your passion, and create a passive income.

How to Create a Passive Income After Retirement:

1. Investing the retirement corpus:

I don’t like to quote a book, “Who Moved My Cheese,” by Spencer Johnson. The main theme of the book is that two rats travel towards a factory where they find bulk cheese. Both rats decide that they don’t need to work for food as cheese is available until the end of life.

Hence, they eat the whole cheese day by day. One day, both rats find there are only a few stocks of cheese available. They think someone is stealing their cheese and decide to check who is taking it. They become the guards to save the remaining amount of cheese.

They have forgotten that the cheese has vanished because of them. The fault was that they didn’t work to earn more cheese and wasted all their time safeguarding the remaining cheese.

The key point to take from the story is,

1. After creating a corpus for retirement, it is important to invest it. This will generate some income.

2. You should not just spend all the corpus without adding money.

3. Don’t live like those rats. You have to create a source of passive income or invest in securities like debt funds, index funds, or bonds.

2. Creating Income from Business:

Business means having 300+ employees working for you. They have been paid for their skills and time.

A business should be started with zero investment and using your skills. You have to be started as a side hustle.

Freelancing on weekends makes income and reinvests in the business to develop.

Creating a strong foundation for the business and then attracting investors will be the way forward to getting more employees to work under you.

So, you will manage your company, and people will work for your dream.

This process will never quit, and you will be earning income even after you reach age 60. You can transfer the business management to your children directly, but in a job, you can’t.


·       It is very important to have a passive income in your retirement life.

·       There are majorly two types of passive income: investment and your own business.

·       Don’t be like the rats, who just spent their total cheese.

·       Job can’t provide you with a sweet retirement, and the job has no passive income.