Generation Y needs to get serious about finances, says R K Dubey, Chairman and MD, Canara Bank

BANGALORE: Only one out of 10 people who want to retire early might be able to achieve his or her dream. Poor knowledge of financial products, bad investment choices and an unwillingness to consult professional financial planners mean the rest will have to continue working, some of them well into their 60s.

"The level of financial illiteracy in India is abysmal. Only a small segment of investors go for proper financial planning," said RK Dubey, chairman and managing director of Canara Bank, at a panel discussion to mark the release of You Can Be Rich, a personal finance handbook from ET Wealth.

The book cuts through the clutter of financial jargon to offer lucid advice on each aspect of personal finance and the basic instruments of investment.

Dubey said such books are needed to spread financial awareness among investors, especially young people who earn well but have little knowledge about how to invest that money.

The other panelists included TV Mohandas Pai, former Infosys director and now chairman of Aarin Capital, Srikanth Bhagavat, managing director and principal advisor of Hexagon Wealth, and Nitin Vyakaranam, founder and CEO of financial planning portal ArthaYantra. Priya Sunder, co-founder and director of Peak Alpha Advisory, moderated the discussion.

Financial planning was especially important for wannabe entrepreneurs, Pai said. "Taking the plunge at 45 can be risky. You must secure your future first before you let go of the certainty of a salaried job," he told the gathering.

Vyakaranam said that building a sufficient corpus was important for people wanting to start a business. "Your family should not suffer just because you want to take risk," he said.

Bhagavat said a financial planner will be able to assess whether the individual has the resources and capacity to take the risk of starting a business.

Wrapping up the discussion, Sunder said, "The young generation is messing up its finances. Financial planning allows one to take control."