In India, a vast proportion of the labour force belongs to the unorganised sector where the workers have no provision for getting a steady stream of income after completing their active service years. Child education, marriage and retirement are some of the critical financial decisions you would take in your life, and hence it should be planned carefully.
Some financial advisers believe that most investors in India do not understand or address the risk factor in their portfolio especially when it comes to building a retirement corpus. Here is a checklist that will help you live life peacefully after retirement.
Have a retirement plan in placeWhile this may sound like the most obvious thing to do, not many people realise the importance of retirement planning until it is too late. The retirement planning must start with deciding at what age you plan to retire and how much money you need to save to live an independent life without compromising on your essential expenses post-retirement. Based on your current lifestyle and your expected growth, you would have to determine this over the years.
Decide the retirement incomeOne of the critical aspects of retirement financial planning is to build a robust income source that would help you meet your daily expenses in your post-retirement life. You would also have to plan for the unexpected situations like a medical emergency or a sharp decline in the market that would affect your income needs.
If you have not yet invested in an insurance policy, now would be the best time to do it. Take your time to review the various options available and select the best plan that suit your’s and your spouse’s needs.
Focus on paying off your debtsIn your post-retirement life, the last thing you would want to have is an impending debt. As you climb the ladder of financial growth during your working days, it is paramount that you focus on paying off all your debts as soon as you can. Be it the home loan, a car loan or a debt that you owe to someone.
If you are looking for tips on how to prepare for retirement, paying off the debts should top your checklist. There is nothing more tarrying than not having enough income, and you have a pile of bills to pay. You must know precisely how much debt you owe and what steps you must take to pay back.
There is no room for complacencyRetirement planning is a critical financial decision that would affect your whole life, and you must not take it lightly. As you continue to tick off your pension checklist make sure that you stay on top of your investments and other income source and periodically review it. Evaluate the performance of the different investment products and maintain a diversified portfolio.
As you near the retirement age, you may consider moving a large chunk of your money into non-risky investments. For all financial planning, it is best advised to work with an expert fund manager or a financial planner and take their advice on the investment options.
Click here to visit our Retirement Planning Calculator
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
Disadvantages of Early Retirement - What Happens When You're Not Working?
Early retirement seems to be good, many people enjoy life without working especially with extra earnings. But they are not aware about the cons. Lets explore the disadvantages of retiring early to save your retirement life.
5 Benefits of Health Insurance that Makes it a Must Have Cover
Here are the 5 benefits of health insurance that makes it a must to cover
When Should You Withdraw Money from a Mutual Fund?
In case of a sudden change in fund strategy or an underperformance scheme for more than 3-4 years, it makes sense to withdraw money.
How To Apply For Personal Loan
Applying for a personal loan has become extremely easy these days. With the increase in applicants, banks and other financial institutions have made the process very simple.