Retirement Savings Tips for 50 to 60 Year Olds

Saving for retirement for individuals in the 50 to 60 age bracket calls for adopting a different approach. When done early, you can be aggressive, but as you grow old and touch your 50s and 60s, situation changes. If you are in this age group, find out how you can save for the golden years of your life.

This is an essential consideration while saving for retirement in your 50s and 60s. Retirement is the time when active income stops, and hence it’s crucial to preserve capital. There are multiple financial instruments that allow you to do so.For example, bank fixed deposits, public provident fund (PPF) and national savings certificate (NSC) offer capital safety and are latent to market volatility. While the returns may not be spectacular, they keep the principle amount from eroding due to vagaries of the stock market.

Though this holds true for every age group, its significance is more if you are in your 50s and 60s. Every penny saved now will help you in your post-retirement years. It’s easy to automate savings by giving standing instructions to your bank.You can open a recurring deposit account with your bank where a certain sum of money will be deducted and invested every month. You can also opt for systematic investment plans (SIPs) in mutual funds, where a fixed amount is invested at a pre-defined interval.

There are many government-backed retirement schemes available in India. Senior Citizen Savings Schemes (SCSS) is one such scheme which offers quarterly interest payment. If you are above 60 or have opted for voluntary retirement scheme or superannuation, you can opt for SCSS.You can invest up to Rs. 15 lakhs in the scheme and the rate of interest is decided by the Government. You can opt for this scheme in any bank or post office.

Medical expenses form a significant chunk of expenses for retirees. A medical contingency can wipe out a significant portion of the retirement kitty. Therefore, it’s important to remain guarded and safeguard your finances from depleting in the event of hospitalisation.A health insurance plan can help you do that. Though buying a health plan in your 50s and 60s can command a high premium, yet it’s recommended to have it in your portfolio. There are tailor-made health plans available for senior citizens, which you can opt for.

While these tips can help you save for retirement when you are in your 50s and 60s, note that needs differ across individuals. Gauge your post-retirement needs and act accordingly.

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.