Retirement planning is income planning minus interest. Five to seven years out, card balances must vanish. End the debt to start the decade.
RBI’s directions mandate clear billing and minimum‑due warnings; newspapers show how revolving at high APRs delays retirement choices (Reserve Bank of India, 2024; Mint, 2025). Pension rules and EPFO withdrawals set timelines; a card spiral should not crowd them (PFRDA, 2024; EPFO, 2025).
Five‑Year Glide Path
- Year −5: Close unused cards; consolidate balances if a cheaper personal loan exists.
- Year −4 to −2: Avalanche payments; no new EMI unless essential.
- Year −1: Zero card balance; keep one low‑fee card for travel and hospital holds, paid in full monthly.
Humor break: Your cake should have layers; your statement should not.
Cash‑Flow Guardrails
- Autopay total due; link to the salary‑to‑pension transition account.
- Set a monthly “retirement rehearsal” budget now; live on it for three months.
- Keep a six‑month emergency fund to avoid last‑minute swipes.
Chiasmus: Retire from debt before you retire from work; retire from work to stay retired from debt.
Takeaways at a Glance
- Plan a five‑year glide; kill cards by Year −1 (Reserve Bank of India, 2024).
- Run a retirement‑rehearsal budget; test the new cash flow.
- Use EPFO/NPS rules wisely; keep withdrawals for retirement, not card cleanup (PFRDA, 2024; EPFO, 2025).
Your Turn
How far are you from your farewell cake? Share your glide path or a line you tell yourself each month.
Closing
Walk into retirement; do not drag interest behind you.
Short poetic disclaimer:
I write to guide, not decide; your money, your stride.
Sources
- Reserve Bank of India. (2024). Master Direction: Credit Card and Debit Card: Issuance and Conduct. https://www.rbi.org.in/
- Pension Fund Regulatory and Development Authority. (2024). NPS exit and withdrawal guidelines. https://www.pfrda.org.in/
- Employees’ Provident Fund Organisation. (2025). Members’ withdrawal rules. https://www.epfindia.gov.in/
- Mint. (2025, January 21). High APRs and the pre‑retirement squeeze. https://www.livemint.com/