Don’t wait for retirement to plan your retirement. Retirement planning is a long process and it is better to start when you are still young when your risk-taking capacity is high and there is more scope for a high-yielding return. Below are tips for a feasible retirement plan:
- Assess Your Income & Expenses: Build a contingency fund. This will be a helpful provision when you are not aware of the expenses you may face during retirement. This money will always be productive.
- Income On The First Day of Retirement: With options like, Senior Citizens’ Saving Scheme (SCSS), tax-free bonds, immediate annuities, Post Office Monthly Income Scheme, Bank Fixed Deposits, & mutual funds, retirees can easily & safely convert their savings into income. Preferred Stocks & Baby bonds are ideal holdings for a fixed income portfolio. If you are not looking at lumpsum investments from time to time, SIPs or Systematic Income Plans and other automated forms of savings are the way forward
- Health Care Plan: Before retiring if your employer assures you that you can continue using your health insurance, you don’t have to worry about a buying a health care plan, which is expensive and entails extensive health check-ups.
- Clear Debts: Pay off your debts before you retire, especially if you have the chance to do it at a lower interest rate.
- Plan Your Expenses: Converting savings into income is only possible with a good expenditure plan. “Don’t spend more than 5% of your savings each year to pay for your living expenses in retirement,” says Kunal Bajaj, CEO & Founder, Clearfunds.com.
- Take Advice Regularly: Never hesitate to consult a certified financial planner, they will make financial planning easier & safer for you.