We all start our independent life with high hopes, armed with education and skills, aiming to create an impact on those around us and the society. However, we also have to perform a constant balancing act between our professional goals and personal life.

In this hustle, life quickly slips by without us noticing its twists and turns. The 50s in your age is a time when you suddenly realise that life has passed by and retirement is knocking on the doors. Some of us may have been very cautious, very prudent and sorted out the financial aims and plans from the very beginning.

But, many of us may not have thought carefully about the financial goals or the road-map to achieve the same. We get used to dealing with the instances demanding financial commitment, like buying a house or taking a loan, as and when they arise. This leads to a series of haphazard, uncoordinated financial decisions and sometimes, losses.

Though it’s never too early to start planning for your retirement, it’s never too late also. You can set on to do thorough financial planning for retirement even in your 50s. Bearing the following factors in mind will help you navigate your course through troubled waters with relative ease and efficiency.

Factors that will help you prepare a financial plan for retirement in the 50s:

  • Set realistic expectations. It’s like running a marathon and not a sprint. You cannot make up for the opportunities that you may have missed during the past 20 years in the coming 10 years. Patience and disciplined investments will do the trick.
  • Assess your current investments. Balance and trim your present portfolio by liquidating the same types of investments. Ensure that you have bought adequate health insurance and term plans.
  • Calculate your financial goals by estimating future personal ambitions and family requirements, inflation, and factoring in the possibility of sudden exigencies like terminal illness, change of jobs, early retirement etc.
  • Accelerate the pace of your savings or change the asset mix to earn more returns as well as to maximize the corpus. 10 years is still a good period to earn decent returns and capital appreciation from equity. You may shift the funds to debt gradually as you reach closer to the age of 60.
  • Invest in a mix of fixed income as well as market-linked instruments like PPF and Mutual funds. In mutual funds, you can invest in hybrid funds and large-cap, blue-chip funds would be good. Avoid sector-specific or thematic as they are high risk, high return asset class. Park more money in tax saving instruments like debt funds.
  • Be ready for a compromise, if required. Forego an expensive purchase immediately after retirement. Defer it to a later date so as to avoid a dent in your corpus.
  • Be disciplined. Chart out a course and stick to your commitments. Don’t speculate and don’t liquidate your mutual funds during market corrections or the slightest change in market conditions. It requires faith and patience to build a retirement corpus.
  • In case of some serious shortfall, try to extend your job for a couple of years or accept another job after retirement to continue the income as well as savings and make up for the shortfall in the target corpus.
  • Avoid taking out loans at this stage of your life like loans to fund the higher education of your children or to buy a property. Encourage your children to take an educational loan with them as primary borrowers.
If you follow the above-mentioned tips carefully, your financial plan should be well on track to efficiently serve your financial needs after retirement.

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DISCLAIMER

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.



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