Finance gurus always emphasise on the fact that one should start working towards building their retirement corpus as soon as they start earning. However, the sad part is that this important advice is often overlooked and most of the times falls on deaf ears. Many couples don’t give retirement planning much importance in the young years and only start saving when they reach their 50s.
Planning for retirement after reaching 50s is like running a marathon and only getting serious about winning it in the last stage. No matter how much effort one puts in, coming out as a winner will be nothing but difficult. So, in order to reach the finish line effortlessly, couples must understand the importance of time and start planning early.
Here are a few tips that will help plan the retirement and make you the winner of the marathon called life. Take a look!
Calculate Your Requirement
If you are prepared to plan your retirement but still haven’t calculated the amount that you would require to continue with the same lifestyle, do it now. Start by considering the current and future monetary requirements. Take stock of all your investments and savings as well to get a fair idea of how long the accumulated amount will last. While doing all the calculations, don’t forget to keep inflation in mind. For example, if you require ₹50,000 to run the household at present, the monthly requirement will increase to ₹70,000 in the next six years if we take an estimate of 6% inflation. You would require ₹90,000, in 10 years to get the same household jobs sorted.
Choose the Right Investment Plan
When it comes to retirement plans, India has a sea of options to choose from. These retirement plans are designed in a way that you have to do nothing but sit back and relax when the time comes. Many insurers offer a host of retirement plans to choose from. With guaranteed monthly/annual income for the rest of the life, insurers who offer the right retirement plans in India are always sought by investors. Run through your requirement, analyse all the plans well and choose the one that suits best to your requirement.
Fuel Your Savings
Keep a constant check on your savings and if you notice any shortfall, find ways to boost the retirement kitty. There are two ways – increase the investment amount or opt for instruments that offer higher returns. Also, if the two of you are earning a decent amount individually and the household can run smoothly by one person’s salary – opt to invest either yours or your spouse’s entire salary.
Diversify Your Investments
Another great option to build maximum corpus for your retirement is to map your money in various investment plans. You sure must have zeroed down on any of the promising retirement plans in India, but you also have to look for other investment instruments that offer great returns and the fluctuations in the market don’t affect them.
Don’t Miss Out on Buying a Health Insurance
No one wants to spend their retirement corpus on health emergencies, and if they do have to, it affects their savings. Hence, a wise idea is to buy comprehensive health insurance that covers all illnesses. An adequate health cover will tackle such extra expenses and won’t affect your retirement corpus in any way.
Don’t Plan to Retire Together
Unless the two of you are of the same age and in the same health condition, don’t plan to retire together. It is always a good idea for one of you to retire at a later stage. The advantages of planning separate retirements are twofold:
1. Continued income from one end adds a few more years to save for the retirement
2. An extra three-five years of work will result in shorter retirement assets, and larger withdrawal amounts every year
Retirement might be decades away; however, it is an expensive and complex phase that needs the support of one another. Therefore, it is vital to choose the right insurer that offers maximum benefits. Insurers these days offer retirement plans backed with features like minimum 101% return on all premiums paid. The application process offered by reputable insurers like Future Generali is smooth, terms and conditions are easy to understand while the plans work as hard as both of you for the retirement.
Banner Image Credit: Pexels.com